Selective Insurance (SIGI) 8-K Results of Operations and Financial Condition

EXHIBIT 99.2

Supplemental Investor Package

___________________________________________________

First Quarter 2012

Investor Contact:

Jennifer DiBerardino

Senior Vice President, Investor Relations and Treasurer

Tel:  973-948-1364

jennifer.diberardino@selective.com

Selective Insurance Group, Inc.
Selected Balance Sheet Data (unaudited)
($ in thousands, except per share amounts)
	March 31,								March 31,								December 31,
	2012									2011								2011
						Unrecognized/								Unrealized/								Unrecognized/
	Balance			Market		Unrealized			Balance			Market		Unrecognized			Balance			Market		Unrealized
	Sheet			Value		Gain/(Loss)			Sheet			Value		Gain/(Loss)			Sheet			Value		Gain/(Loss)
Invested Assets:
Corporate bonds1	$	2,072,573			2,086,423		85,230		$	1,743,751			1,763,993		33,499		$	1,967,498			1,981,909		73,085
Gov't\ Municipal bonds		1,629,130			1,659,819		101,166			1,846,872			1,865,194		71,228			1,642,223			1,673,508		108,694
Total bonds		3,701,703			3,746,242		186,396			3,590,623			3,629,187		104,727			3,609,721			3,655,417		181,779
Equities		152,986			152,986		22,773			77,138			77,138		9,034			157,355			157,355		13,529
Short-term investments		174,472			174,472		-			156,437			156,437		-			217,044			217,044		-
Other investments		125,140			125,140		(4,989	)		136,148			136,148		(2,500	)		128,301			128,301		(4,520	)
Total invested assets		4,154,301			4,198,840		204,180			3,960,346			3,998,910		111,261			4,112,421			4,158,117		190,788
Invested assets per $ of stockholders' equity2		3.84								3.85								3.89
Total assets2		5,629,597								5,221,109								5,685,469
Liabilities:
Reserve for losses and loss expenses		3,035,773								2,864,889								3,144,924
Unearned premium reserve		937,909								833,823								906,991
Total liabilities		4,546,679								4,191,573								4,627,141
Stockholders' equity2		1,082,918								1,029,536								1,058,328
Total debt to capitalization ratio2		22.1	%							20.3	%							22.5	%
Adjusted total debt to capitalization ratio 2,3		15.6	%							13.3	%							15.9	%
Book value per share2		19.76								19.06								19.45
Book value per share excluding
unrealized gain or loss on bond portfolio2		18.08								18.26								17.82
NPW per insurance segment employee (excludes E&S)		807								760								791
Statutory premiums to surplus ratio		1.4	x							1.3	x							1.4	x
Statutory surplus		1,083,174								1,083,848								1,062,707

1 Includes mortgage-backed and asset-backed securities.

2 Prior year results have been restated to reflect the adoption of ASU 2010-26, "Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts."

3 The adjusted debt to capitalization ratio reflects an estimated equity treatment of 90% applied to our $100 million Junior Subordinated Notes issued September 25, 2006 as applied by A.M. Best.

Selective Insurance Group, Inc.
Selected Income Statement Data (unaudited)
March 2012		THREE MONTHS ENDED March 31,
($ in thousands, except per share amounts)		2012						2011
					Per diluted share						Per diluted share
Consolidated
Revenue		$	419,348					$	403,456
Operating income1			15,260			0.28			16,756			0.30
Net realized gains, after tax			2,833			0.05			3,744			0.07
Net income1			18,093			0.33			20,500			0.37
Operating return on equity1			5.7	%					6.5	%
Insurance Operations
Gross premiums written			497,955						428,995
Net premiums written			420,172						361,835
Net premiums earned			378,829						351,343
Underwriting loss1	- before tax		(1,363	)					(12,698	)
	- after tax		(886	)		(0.02	)		(8,254	)		(0.15	)
GAAP combined ratio1			100.4	%					103.6	%
Commercial lines
Net premiums earned			310,220						286,763
GAAP combined ratio1			101.4	%					102.2	%
Personal lines
Net premiums earned			68,609						64,580
GAAP combined ratio1			95.5	%					110.1	%
Investments
Net investment income	- before tax		32,628						43,473
	- after tax		24,775			0.45			32,125			0.58
Effective tax rate			24.1	%					26.1	%
Annual after-tax yield on investment portfolio			2.4	%					3.3	%
Annual after-tax, after-interest expense yield			2.1	%					3.0	%
Invested assets per $ of stockholders' equity			3.84						3.85
Other expenses (net of other income)
Interest expense	- before tax		(4,700	)					(4,557	)
	- after tax		(3,055	)		(0.05	)		(2,962	)		(0.05	)
Other Expense - after tax		$	(5,574	)		(0.10	)	$	(4,153	)		(0.08	)
Diluted weighted avg shares outstanding			55,605						55,054

1 Prior year results have been restated to reflect the adoption of ASU 2010-26, "Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts."

Selective Insurance Group, Inc. and Consolidated Subsidiaries
GAAP Investment Income
(unaudited)
($ in thousands)
	Year to Date						%
	March			March			Increase
	2012			2011			(Decrease)
Investment Income:
Interest:
Fixed Maturity Securities	$	31,350			33,123			(5	)
Short-term		38			62			(39	)
Other Investments:
Alternative Investments		2,295			11,641			(80	)
Other		(295	)		-			N/M
Dividends		1,237			317			290
Miscellaneous		39			25			56
		34,664			45,168			(23	)
Investment Expense		2,036			1,695			20
Net Investment Income Before Tax		32,628			43,473			(25	)
Tax		7,853			11,348			(31	)
Net Investment Income After Tax	$	24,775			32,125			(23	)
Net Investment Income per Share	$	0.45			0.58			(22	)
Effective Tax Rate		24.1	%		26.1	%
Average Yields :
Fixed Maturity Securities:
Pre Tax		3.43	%		3.71	%
After Tax		2.59	%		2.84	%
Portfolio:
Pre Tax		3.16	%		4.41	%
After Tax		2.40	%		3.26	%
	Year to date:
	March			March
Net Realized Gains(Losses)		2012			2011
Fixed Maturities		184			(443	)
Equity Securities		4,176			6,203
Short-term Investments		(2	)		-
Total		4,358			5,760
Net of Tax		2,833			3,744

As of March 31, 2012 new money rates for fixed maturity securities were 2.51% on a pre-tax basis and 1.86% on an after-tax basis.

Selective Insurance Group, Inc.
2012 Statutory Results by Line of Business
March 2012 YTD (unaudited)
($ in thousands)
	Net					Net											Underwriting			Dividends to			Combined			Combined
	Premiums		Percent			Premiums		Percent			Loss			LAE			Expense			Policyholders			Ratio			Ratio			Underwriting
	Written		Change			Earned		Change			Ratio			Ratio			Ratio			Ratio			2012			2011			Gain/(Loss)
Personal Lines:
Homeowners	$	25,208		13.6	%	$	27,958		13.9	%		45.4	%		12.2	%		34.3	%		0.0	%		91.9	%		112.0	%	$	3,212
Auto		37,275		2.4	%		37,456		1.3	%		67.5	%		12.1	%		30.2	%		0.0	%		109.8	%		118.8	%		(3,625	)
Other (including flood)		3,063		5.3	%		3,195		4.3	%		50.2	%		4.2	%		(46.3	)%		0.0	%		8.1	%		19.5	%		2,874
Total	$	65,546		6.6	%	$	68,609		6.2	%		57.6	%		11.8	%		28.3	%		0.0	%		97.7	%		111.5	%	$	2,462
Commercial Lines:
Commerical property	$	53,027		9.7	%	$	49,371		2.4	%		40.3	%		6.2	%		37.5	%		(0.1	)%		83.9	%		86.8	%	$	6,580
Workers compensation		73,188		8.0	%		65,811		5.3	%		68.2	%		16.2	%		24.7	%		1.8	%		110.9	%		122.8	%		(8,991	)
General liability		100,628		13.4	%		90,143		9.2	%		50.9	%		17.4	%		31.9	%		0.0	%		100.2	%		100.3	%		(3,530	)
Auto		75,838		5.7	%		70,484		1.2	%		58.0	%		8.4	%		30.5	%		(0.3	)%		96.6	%		92.3	%		723
Business owners policies		18,231		10.7	%		16,857		2.3	%		43.7	%		14.1	%		41.6	%		0.0	%		99.4	%		112.0	%		(465	)
Bonds		4,644		2.7	%		4,663		(2.2	)%		17.5	%		7.8	%		62.8	%		0.0	%		88.1	%		73.2	%		568
Other		29,069		959.0	%		12,891		404.5	%		40.6	%		17.3	%		42.8	%		0.0	%		100.7	%		47.1	%		(7,017	)
Total	$	354,626		18.1	%	$	310,220		8.2	%		53.1	%		13.0	%		32.8	%		0.3	%		99.2	%		100.6	%	$	(12,133	)
Grand Total	$	420,172		16.1	%	$	378,829		7.8	%		54.0	%		12.7	%		32.2	%		0.2	%		99.1	%		102.6	%	$	(9,671	)
Note: Some amounts may not foot due to rounding.
				2012			2011
	Losses Paid		$	206,893		$	188,841
	LAE Paid			43,536			38,014
	Total Paid		$	250,429		$	226,855

SELECTIVE INSURANCE GROUP, INC.	Unaudited
CONSOLIDATED BALANCE SHEETS	March 31,			December 31,
($ in thousands, except share amounts)	2012			2011
ASSETS
Investments:
Fixed maturity securities, held-to-maturity – at carrying value
(fair value:  $711,731 – 2012; $758,043 – 2011)	$	667,192			712,348
Fixed maturity securities, available-for-sale – at fair value
(amortized cost:  $2,897,522 – 2012; $2,766,856 – 2011)		3,034,511			2,897,373
Equity securities, available-for-sale – at fair value
(cost of:  $130,213 – 2012; $143,826 – 2011)		152,986			157,355
Short-term investments (at cost which approximates fair value)		174,472			217,044
Other investments		125,140			128,301
Total investments		4,154,301			4,112,421
Cash		261			762
Interest and dividends due or accrued		35,369			35,842
Premiums receivable, net of allowance for uncollectible
accounts of:  $3,730 – 2012; $3,768 – 2011		491,401			466,294
Reinsurance recoverables, net		446,393			561,855
Prepaid reinsurance premiums		137,262			147,686
Current federal income tax		-			731
Deferred federal income tax		116,417			120,094
Property and equipment – at cost, net of accumulated
depreciation and amortization of:  $162,559 – 2012; $160,294 – 2011		43,918			43,947
Deferred policy acquisition costs		144,331			135,761
Goodwill		7,849			7,849
Other assets		52,095			52,227
Total assets	$	5,629,597			5,685,469
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for losses and loss expenses	$	3,035,773			3,144,924
Unearned premiums		937,909			906,991
Notes payable		307,366			307,360
Current federal income tax		5,576			-
Accrued salaries and benefits		113,941			119,297
Other liabilities		146,114			148,569
Total liabilities	$	4,546,679			4,627,141
Stockholders’ Equity:
Preferred stock of $0 par value per share:
Authorized shares 5,000,000; no shares issued or outstanding	$	-			-
Common stock of $2 par value per share
Authorized shares 360,000,000
Issued:  97,809,949 – 2012; 97,246,711 – 2011		195,620			194,494
Additional paid-in capital		262,336			257,370
Retained earnings		1,127,142			1,116,319
Accumulated other comprehensive income		52,984			42,294
Treasury stock – at cost (shares:  43,004,815 – 2012; 42,836,201 – 2011)		(555,164	)		(552,149	)
Total stockholders’ equity		1,082,918			1,058,328
Commitments and contingencies
Total liabilities and stockholders’ equity	$	5,629,597			5,685,469

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended
	March 31,
($ in thousands, except per share amounts)	2012			2011
Revenues:
Net premiums earned	$	378,829			351,343
Net investment income earned		32,628			43,473
Net realized gains (losses):
Net realized investment gains		4,779			6,390
Other-than-temporary impairments		(257	)		(532	)
Other-than-temporary impairments on fixed maturity securities
recognized in other comprehensive income		(164	)		(98	)
Total net realized gains		4,358			5,760
Other income		3,533			2,880
Total revenues		419,348			403,456
Expenses:
Losses and loss expenses incurred		252,906			249,206
Policy acquisition costs		127,958			115,044
Interest expense		4,700			4,557
Other expenses		10,593			8,491
Total expenses		396,157			377,298
Income before federal income tax		23,191			26,158
Federal income tax expense (benefit):
Current		7,178			4,276
Deferred		(2,080	)		1,382
Total federal income tax expense		5,098			5,658
Net income	$	18,093			20,500
Earnings per share:
Basic net income	$	0.33			0.38
Diluted net income	$	0.33			0.37
Dividends to stockholders	$	0.13			0.13

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
	Quarter ended March 31,
($ in thousands)	2012			2011
Net income	$	18,093			20,500
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) arising during period		12,873			(606	)
Non-credit portion of other-than-temporary impairments
recognized in other comprehensive income		238			117
Amortization of net unrealized gains on held-to-maturity securities		(516	)		(764	)
Less: reclassification adjustment for gains included in net income		(2,833	)		(3,737	)
Total unrealized gains (losses) on investment securities		9,762			(4,990	)
Defined benefit pension plans:
Amortization of net actuarial loss included in net income		903			718
Amortization of prior service cost included in net income		25			24
Total defined benefit pension plans		928			742
Other comprehensive income (loss)		10,690			(4,248	)
Comprehensive income	$	28,783			16,252

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
	Quarter ended March 31,
($ in thousands)	2012			2011
Common stock:
Beginning of year	$	194,494			192,725
Dividend reinvestment plan
(shares:  22,916 – 2012; 22,697 – 2011)		46			46
Stock purchase and compensation plans
(shares:  540,322 – 2012; 453,409 – 2011)		1,080			907
End of period		195,620			193,678
Additional paid-in capital:
Beginning of year		257,370			244,613
Dividend reinvestment plan		358			360
Stock purchase and compensation plans		4,608			3,602
End of period		262,336			248,575
Retained earnings:
Beginning of year, as previously reported					1,176,155
Add: Adjustment for the cumulative effect on prior years of applying
retroactively the new method of accounting for deferred policy acquisition costs					(53,068	)
Balance at beginning of year, as adjusted		1,116,319			1,123,087
Net income		18,093			20,500
Dividends to stockholders ($0.13 per share – 2012 and 2011)		(7,270	)		(7,176	)
End of period		1,127,142			1,136,411
Accumulated other comprehensive income:
Beginning of year		42,294			7,024
Other comprehensive income (loss)		10,690			(4,248	)
End of period		52,984			2,776
Treasury stock:
Beginning of year		(552,149	)		(549,408	)
Acquisition of treasury stock
(shares:  168,614 – 2012; 135,095 – 2011)		(3,015	)		(2,496	)
End of period		(555,164	)		(551,904	)
Total stockholders’ equity	$	1,082,918			1,029,536

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW	Quarter ended
	March 31,
($ in thousands)	2012			2011
Operating Activities
Net income	$	18,093			20,500
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		9,748			8,001
Stock-based compensation expense		3,329			3,135
Undistributed losses (income) of equity method investments		764			(2,482	)
Net realized gains		(4,358	)		(5,760	)
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverables		6,311			22,196
Increase in unearned premiums, net of prepaid reinsurance and advance premiums		41,769			11,297
Decrease in net federal income taxes		4,227			5,663
Increase in premiums receivable		(25,107	)		(15,958	)
(Increase) decrease in deferred policy acquisition costs		(8,570	)		996
Decrease in interest and dividends due or accrued		1,108			355
Decrease in accrued salaries and benefits		(5,356	)		(4,976	)
Decrease in accrued insurance expenses		(13,476	)		(17,082	)
Other-net		7,373			2,105
Net adjustments		17,762			7,490
Net cash provided by operating activities		35,855			27,990
Investing Activities
Purchase of fixed maturity securities, available-for-sale		(226,525	)		(114,320	)
Purchase of equity securities, available-for-sale		(39,724	)		(59,780	)
Purchase of other investments		(2,990	)		(5,008	)
Purchase of short-term investments		(368,210	)		(316,769	)
Purchase of subsidiary		255			-
Sale of subsidiary		287			415
Sale of fixed maturity securities, available-for-sale		14,308			14,907
Sale of short-term investments		410,780			321,487
Redemption and maturities of fixed maturity securities, held-to-maturity		38,879			38,483
Redemption and maturities of fixed maturity securities, available-for-sale		84,124			19,771
Sale of equity securities, available-for-sale		57,513			56,836
Distributions from other investments		5,299			9,122
Sale of other investments		-			16,357
Purchase of property and equipment		(2,263	)		(1,366	)
Net cash used in investing activities		(28,267	)		(19,865	)
Financing Activities
Dividends to stockholders		(6,713	)		(6,605	)
Acquisition of treasury stock		(3,015	)		(2,496	)
Net proceeds from stock purchase and compensation plans		769			1,008
Excess tax benefits from share-based payment arrangements		870			(181	)
Net cash used in financing activities		(8,089	)		(8,274	)
Net decrease in cash		(501	)		(149	)
Cash, beginning of year		762			645
Cash, end of period	$	261			496

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Balance Sheets
($ in thousands)
	Mar-31			Dec-31 *
	2012			2011
ASSETS
Bonds	$	3,534,562			3,452,204
Common stocks		152,986			157,355
Affiliated mortgage loan		37,962			38,131
Other investments		191,227			197,409
Short-term investments		137,871			183,070
Total investments		4,054,608			4,028,169
Cash on hand and in banks		(33,319	)		(20,701	)
Interest and dividends due and accrued		35,381			35,880
Premiums receivable		490,119			461,482
Reinsurance recoverable on paid losses and expenses		8,565			12,365
Deferred tax recoverable		143,453			137,659
EDP equipment		1,711			1,804
Equities and deposits in pools and associations		6,520			4,837
Receivable for sold securities		21			644
Other assets		28,006			27,964
Total assets	$	4,735,065			4,690,103
LIABILITIES
Reserve for losses	$	2,170,597			2,173,028
Reinsurance payable on paid loss and loss expense		1,260			1,285
Reserve for loss expenses		423,330			418,542
Unearned premiums		800,647			759,304
Reserve for commissions payable		34,182			44,488
Ceded balances payable		15,569			21,871
Federal income tax payable		21,770			12,176
Premium and other taxes payable		20,419			23,588
Borrowed money		58,044			58,043
Reserve for dividends to policyholders		3,486			3,470
Reserves for unauthorized reinsurance		1,785			1,785
Funds withheld on account of others		5,927			6,538
Accrued salaries and benefits		75,336			80,601
Other liabilities		19,539			22,677
Total liabilities		3,651,891			3,627,396
POLICYHOLDERS' SURPLUS
Capital		32,325			32,325
Aggregate write-ins for special surplus funds		-			44,296
Paid in surplus		307,022			307,022
Unassigned surplus		743,827			679,064
Total policyholders' surplus		1,083,174			1,062,707
Total liabilities and policyholders' surplus	$	4,735,065			4,690,103

* Includes the December 31, 2011 acquisition of Montpelier U.S. Insurance Company (now known as Mesa Underwriters Specialty Insurance Company).  Combined statutory filings for  2011 do not reflect the acquisition as this Company was not included in our intercompany pooling until January 1, 2012.

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Statements Of Income
($ in thousands)
	Three Months Ended
	March
UNDERWRITING	2012					2011
Net premiums written	$	420,172					361,835
Net premiums earned		378,829					351,343
Net losses paid		206,893					188,841
Change in reserve for losses		(2,430	)				21,335
Net losses incurred		204,463		54.0	%		210,176		59.8	%
Net loss expenses paid		43,536					38,014
Change in reserve for loss expenses		4,788					1,092
Net loss expenses incurred		48,324		12.7	%		39,106		11.1	%
Net underwriting expenses incurred		136,519		32.6	%		114,809		31.7	%
Total deductions		389,306					364,091
Statutory underwriting loss		(10,477	)				(12,748	)
Net loss from premium balances charged off		(1,241	)				(1,358	)
Finance charges and other income		2,961					2,859
Total other income		1,720		-0.4	%		1,501		-0.4	%
Policyholders' dividends incurred		(914	)	0.2	%		(1,286	)	0.4	%
Total underwriting loss		(9,671	)	99.1	%		(12,533	)	102.6	%
INVESTMENT
Net investment income earned		33,479					41,258
Net realized gain		4,358					5,760
Total income before income tax		28,166					34,485
Federal income tax expense		9,593					9,270
Net income	$	18,573					25,215
Policyholders' Surplus
Surplus, beginning of period	$	1,062,707					1,073,025
Net income		18,573					25,215
Change in deferred taxes		2,086					447
Change in unrealized gains		4,958					51
Dividends to stockholders		(15,765	)				(14,506	)
Change in cum. effect of acctg principle		44,296					-
Change in non-admitted assets		10,559					2,784
Change in additional admitted deferred taxes		(44,296	)				(3,168	)
Surplus adjustments		56					-
Net change in surplus for period		20,467					10,823
Surplus, end of period	$	1,083,174					1,083,848
Statutory underwriting loss	$	(9,671	)				(12,533	)
Adjustments under GAAP:
Deferred policy acquisition costs1		8,570					(996	)
Pension costs		70					903
Other, net		(332	)				(72	)
GAAP underwriting loss	$	(1,363	)				(12,698	)

1 Prior year results have been restated to reflect the adoption of ASU 2010-26, "Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts."

Note:  Some amounts or ratios may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Alternative Investments
as of March 31, 2012
(unaudited)
	Inception	Original		Remaining		Current		YTD			DPI(1)		TVPI(2)
Fund	Year	Commitment		Commitment		Market Value		Income			Ratio		Ratio
Real Estate
Silverpeak RE II	2005		20,000,000		2,409,941		9,599,050		51,228			0.49		0.96
Silverpeak RE III	2008		15,000,000		8,095,585		3,225,766		(151,616	)		0.02		0.49
Total - Real Estate			35,000,000		10,505,526		12,824,816		(100,388	)		0.38		0.84
Mezzanine Financing
Neovara Euro Mezz	2004		9,000,000		-		973,174		(99,119	)		0.95		1.02
GS Mezz V	2007		25,000,000		15,255,707		8,193,985		449,623			0.60		1.20
Total - Mezz. Financing			34,000,000		15,255,707		9,167,159		350,504			0.77		1.11
Distressed Debt
Varde VIII	2006		10,000,000		-		6,464,522		(2,012	)		0.47		1.12
GS Distressed Opp III	2007		15,000,000		3,074,247		8,616,443		(368,513	)		0.30		0.96
Total - Distressed Debt			25,000,000		3,074,247		15,080,965		(370,525	)		0.37		1.03
Private Equity
Prospector	1997		5,000,000		-		410,898		(223	)		2.79		2.88
Trilantic Capital Partners III	2004		10,000,000		1,215,319		3,935,305		123,539			1.29		1.71
NB Co-Invest	2006		15,000,000		1,818,701		10,009,566		567,442			0.55		1.26
Trilantic Capital Partners IV	2007		11,098,351		1,354,691		8,819,402		424,765			0.37		1.23
Total - Private Equity			41,098,351		4,388,711		23,175,171		1,115,523			0.97		1.57
Private Equity, Secondary Market
NB SOF	2005		12,000,000		899,494		6,549,726		90,433			0.66		1.25
GS Vintage IV	2007		20,000,000		4,708,983		14,508,415		(257,500	)		0.41		1.19
NB SOF II	2008		12,000,000		2,981,636		8,703,071		190,100			0.38		1.32
Total - Pvt. Eq. Sec. Mkt.			44,000,000		8,590,113		29,761,213		23,033			0.47		1.24
Energy/Power Generation
ArcLight I	2002		15,000,000		1,655,505		152,319		(34,880	)		1.80		1.81
ArcLight II	2003		15,000,000		2,295,492		2,767,518		(205,265	)		1.23		1.37
ArcLight III	2006		15,000,000		2,037,794		8,532,737		55,237			0.71		1.25
Quintana Energy	2006		10,000,000		1,714,174		7,977,770		1,023,094			0.23		1.19
ArcLight IV	2007		10,000,000		2,717,373		4,718,699		254,610			0.86		1.34
Total - Energy/Power Generation			65,000,000		10,420,338		24,149,043		1,092,796			1.07		1.42
Venture Capital
Venture V	2001		10,000,000		800,000		7,326,758		183,740			0.32		1.12
Total - Venture Capital			10,000,000		800,000		7,326,758		183,740			0.32		1.12
TOTAL - ALTERNATIVE INVESTMENTS		$	254,098,351		53,034,641		121,485,124		2,294,683			0.74		1.26
(1) Distributed to paid in ratio
(2) Total value to paid in ratio
Note: Some amounts may not foot due to rounding

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Municipal Bond Portfolio

State and Repayment Source Composition

March 31, 2012

($  in thousands)

(unaudited)

Exposure = 48% Held-to-Maturity; 52% Available-for-Sale

Repayment Source Composition by State
Market Values
State	Revenue	% of State	General Obligation (GO)-Local	% of State	General Obligation (GO)-State	% of State	TX -Permanent School Fund (PSF)	% of State	Total	% of Total
TX	54,479	54%	44,538	45%	1,100	1%	-	0%	100,117	8%
TX-PSF	-	0%	-	0%	-	0%	40,738	100%	40,738	3%
NY	81,008	100%	-	0%	-	0%	-	0%	81,008	6%
WA	28,890	36%	49,461	62%	1,983	2%	-	0%	80,334	6%
AZ	65,459	90%	7,003	10%	-	0%	-	0%	72,462	6%
FL	52,938	94%	-	0%	3,545	6%	-	0%	56,483	4%
OH	29,865	59%	13,489	27%	7,196	14%	-	0%	50,550	4%
CO	17,239	35%	30,456	61%	1,795	4%	-	0%	49,490	4%
IL	28,259	58%	20,460	42%	-	0%	-	0%	48,719	4%
NC	23,977	58%	13,603	33%	3,705	9%	-	0%	41,285	3%
MO	21,026	55%	17,010	45%	-	0%	-	0%	38,036	3%
Pre-refunded	49,964	58%	20,884	24%	12,295	14%	3,629	4%	86,772	7%
Other	327,297	61%	108,835	20%	99,240	19%	-	0%	535,372	42%
Grand Total	780,401	61%	325,739	25%	130,859	10%	44,367	4%	1,281,366	100%

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Credit Quality of Available-for-Sale Fixed Maturity Securities
March 31, 2012
($ in millions)
(unaudited)
	Fair Value		Unrealized Gain (Loss)			Average Credit Quality
AFS Fixed Maturity Portfolio:
U.S. government obligations1	$	335.2		18.7		AA+
Foreign government obligations		37.8		0.9		AA
State and municipal obligations		669.1		40.1		AA
Corporate securities		1,294.9		58.0		A
Mortgage-backed securities ("MBS")		602.8		17.9		AA
Asset-backed securities ("ABS")		94.7		1.4		AAA
Total AFS fixed maturity portfolio	$	3,034.5		137.0		AA-
State and Municipal Obligations:
Government obligations	$	304.2		20.0		AA+
Special revenue obligations		364.9		20.1		AA
Total state and municipal obligations	$	669.1		40.1		AA
Corporate Securities:
Financial	$	420.6		12.9		A
Industrials		86.3		6.8		A-
Utilities		82.5		3.8		BBB+
Consumer discretion		113.0		5.6		A-
Consumer staples		141.8		7.3		A
Healthcare		153.0		8.6		AA-
Materials		69.4		3.3		A-
Energy		82.7		3.6		A-
Information technology		80.0		2.8		A
Telecommunications services		54.3		2.0		BBB+
Other		11.3		1.3		AA+
Total corporate securities	$	1,294.9		58.0		A
MBS:
Government Guaranteed Agency commercial mortgage-backed securities ("CMBS")	$	68.4		3.4		AA+
Non-agency CMBS		43.7		(1.3	)	A
Government Guaranteed Agency residential mortgage-backed securities ("RMBS")		102.8		4.8		AA+
Other Agency RMBS		340.1		10.6		AA+
Non-agency RMBS		40.7		0.3		BBB+
Alternative-A ("Alt-A") RMBS		7.1		0.1		AA+
Total MBS	$	602.8		17.9		AA
ABS:
ABS	$	93.4		1.4		AAA
Alt-A ABS3		0.6		-		D
Sub-prime ABS2,3		0.7		-		D
Total ABS	$	94.7		1.4		AAA

1 U.S. Government includes coporate securities fully guaranteed by the FDIC.

2 We define sub-prime exposure as exposure to direct and indirect investments in non-agency residential mortgages with average FICO® scores below 650.

3 Alt-A ABS and sub-prime ABS each consist of one security that is currently expected by rating agencies to default on its obligations.

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Credit Quality of Held-to-Maturity Securities
March 31, 2012
($ in millions)
(unaudited)
	Fair Value		Carry Value		Unrecognized Holding Gain (Loss)			Unrealized Gain (Loss) in Accumulated Other Comprehensive Income			Total Unrealized Unrecognized Gain (Loss)			Average Credit Quality
HTM Fixed Maturity Portfolio:
Foreign government obligations	$	5.5		5.6		(0.1	)		0.3			0.2		AA+
State and municipal obligations		612.3		581.5		30.8			10.5			41.3		AA
Corporate securities		69.0		62.8		6.2			(1.8	)		4.4		A
MBS		17.0		10.8		6.2			(2.7	)		3.5		AA-
ABS		7.9		6.5		1.4			(1.4	)		-		A
Total HTM fixed maturity portfolio	$	711.7		667.2		44.5			4.9			49.4		AA
State and Municipal Obligations:
Government obligations	$	196.7		187.6		9.1			5.5			14.6		AA
Special revenue obligations		415.6		393.9		21.7			5.0			26.7		AA
Total state and municipal obligations	$	612.3		581.5		30.8			10.5			41.3		AA
Corporate Securities:
Financial	$	20.7		18.7		2.0			(1.3	)		0.7		A-
Industrials		20.0		17.8		2.2			(0.5	)		1.7		A
Utilities		15.3		13.7		1.6			(0.1	)		1.5		A
Consumer discretion		5.8		5.6		0.2			0.1			0.3		AA-
Consumer staples		5.1		5.0		0.1			-			0.1		A
Materials		2.1		2.0		0.1			-			0.1		BBB
Total corporate securities	$	69.0		62.8		6.2			(1.8	)		4.4		A
MBS:
Non-agency CMBS		17.0		10.8		6.2			(2.7	)		3.5		AA-
Total MBS	$	17.0		10.8		6.2			(2.7	)		3.5		AA-
ABS:
ABS	$	5.6		4.9		0.7			(0.5	)		0.2		BBB+
Alt-A ABS		2.3		1.6		0.7			(0.9	)		(0.2	)	AAA
Total ABS	$	7.9		6.5		1.4			(1.4	)		-		A