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

Exhibit 99.2

Supplemental Investor Package

___________________________________________________

First Quarter 2013

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,
	2013								2012								2012
						Unrecognized/								Unrecognized/								Unrecognized/
	Balance			Market		Unrealized			Balance			Market		Unrealized			Balance			Market		Unrealized
	Sheet			Value		Gain/(Loss)			Sheet			Value		Gain/(Loss)			Sheet			Value		Gain/(Loss)
Invested Assets:
Corporate bonds1	$	2,388,239			2,396,950		100,025		$	2,072,573			2,086,423		85,230		$	2,239,284			2,250,536		110,822
Government and Municipal bonds		1,585,513			1,612,584		89,801			1,629,130			1,659,819		101,166			1,610,798			1,640,138		99,026
Total bonds		3,973,752			4,009,534		189,826			3,701,703			3,746,242		186,396			3,850,082			3,890,674		209,848
Equities		174,745			174,745		31,181			152,986			152,986		22,773			151,382			151,382		18,941
Short-term investments		163,440			163,440		-			174,472			174,472		-			214,479			214,479		-
Other investments		109,855			109,855		(4,592	)		125,140			125,140		(4,989	)		114,076			114,076		(4,805	)
Total invested assets		4,421,792			4,457,574		216,415			4,154,301			4,198,840		204,180			4,330,019			4,370,611		223,984
Invested assets per $ of stockholders' equity		3.89								3.84								3.97
Total assets		6,344,027								5,629,597								6,794,216
Liabilities:
Reserve for losses and loss expenses		3,474,392								3,035,773								4,068,941
Unearned premium reserve		1,005,475								937,909								974,706
Total liabilities		5,207,682								4,546,679								5,703,624
Stockholders' equity		1,136,345								1,082,918								1,090,592
Total debt to capitalization ratio		25.7	%							22.1	%							22.0	%
Adjusted total debt to capitalization ratio 2		N/A								15.6	%							15.6	%
Book value per share		20.46								19.76								19.77
Book value per share excluding
unrealized gain or loss on bond portfolio		18.66								18.08								17.78
NPW per insurance segment employee3		864								N/M								842
Statutory premiums to surplus ratio		1.5	x							1.4	x							1.6	x
Statutory surplus		1,151,959								1,083,174								1,050,107

1  Includes mortgage-backed and asset-backed securities.

2  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.  These notes were redeemed in March 2013.

3  Prior year amounts have been restated to include the impact of E&S.

Selective Insurance Group, Inc.
Selected Income Statement Data (unaudited)
March 2013		THREE MONTHS ENDED March 31,
($ in thousands, except per share amounts)		2013						2012
					Per diluted share						Per diluted share
Consolidated
Revenue		$	459,949					$	419,348
Operating income			20,124			0.36			15,260			0.28
Net realized gains, after tax			2,181			0.04			2,833			0.05
Income from continuing operations			22,305			0.40			18,093			0.33
Loss on discontinued operations, after tax			(997	)		(0.02	)		-			-
Net income			21,308			0.38			18,093			0.33
Operating return on equity			7.2	%					5.7	%
Total Insurance Operations
Gross premiums written			537,298						497,955
Net premiums written			450,124						420,172
Net premiums earned			420,940						378,829
Underwriting income (loss)	- before tax		12,161						(1,363	)
	- after tax		7,905			0.14			(886	)		(0.02	)
GAAP combined ratio			97.1	%					100.4	%
Total Standard lines
Net premiums earned			390,881						369,106
GAAP combined ratio			96.9	%					99.0	%
Standard Commercial lines
Net premiums earned			317,845						300,497
GAAP combined ratio			98.1	%					99.9	%
Standard Personal lines
Net premiums earned			73,036						68,609
GAAP combined ratio			91.8	%					95.5	%
Excess and Surplus lines
Net premiums earned			30,059						9,723
GAAP combined ratio			99.7	%					150.3	%
Investments
Net investment income	- before tax		32,870						32,628
	- after tax		24,839			0.44			24,775			0.45
Effective tax rate			24.4	%					24.1	%
Annual after-tax yield on investment portfolio			2.3	%					2.4	%
Annual after-tax, after-interest expense yield			1.9	%					2.1	%
Invested assets per $ of stockholders' equity			3.89						3.84
Other expenses (net of other income)
Interest expense	- before tax		(5,831	)					(4,700	)
	- after tax		(3,790	)		(0.07	)		(3,055	)		(0.05	)
Other Expense - after tax1		$	(8,830	)		(0.15	)	$	(5,574	)		(0.10	)
Diluted weighted avg shares outstanding			56,455						55,605

1  The 2013 after-tax expense includes the write-off of $2.2 million of our remaining capitalized debt issuance costs related to our 7.5% Junior Notes that we redeemed in March 2013, and a $2.1 million increase in our long-term employee compensation expense related to the increase in our stock price.

Selective Insurance Group, Inc. and Consolidated Subsidiaries
GAAP Investment Income
(unaudited)
($ in thousands)
	Year to Date						%
	March			March			Increase
	2013			2012			(Decrease)
Investment Income:
Interest:
Fixed Maturity Securities		30,089			31,350			(4.0	)
Short-term		52			38			36.8
Other Investments:
Alternative Investments		4,240			2,295			84.7
Other		(638	)		(295	)		(116.3	)
Dividends		1,207			1,237			(2.4	)
Miscellaneous		-			39			(100.0	)
		34,950			34,664			0.8
Investment Expense		2,080			2,036			2.2
Net Investment Income Before Tax		32,870			32,628			0.7
Tax		8,031			7,853			2.3
Net Investment Income After Tax	$	24,839			24,775			0.3
Net Investment Income per Share	$	0.44			0.45			(2.2	)
Effective Tax Rate		24.4	%		24.1	%
Average Yields :
Fixed Maturity Securities:
Pre Tax		3.08	%		3.43	%
After Tax		2.33	%		2.59	%
Portfolio:
Pre Tax		3.00	%		3.16	%
After Tax		2.27	%		2.40	%

	Year to date:
	March			March
Net Realized Gains (Losses)	2013			2012
Fixed Maturities		651			184
Equity Securities		5,287			4,176
Short Term Investments		-			(2	)
Other Investments		(2,583	)		-
Total		3,355			4,358
Net of Tax		2,181			2,833

As of March 31, 2013 new money rates for fixed maturity securities were 1.48% on a pre-tax basis and 1.04% on an after tax-basis.

Selective Insurance Group, Inc.
2013 Statutory Results by Line of Business
March YTD unaudited
($ in thousands)
	Net Premiums		Percent			Net Premiums		Percent			Loss			LAE			Underwriting Expense			Dividends to Policyholders			Combined Ratio			Combined Ratio			Underwriting
	Written		Change			Earned		Change			Ratio			Ratio			Ratio			Ratio			2013			2012			Gain/(Loss)
Standard Personal Lines:
Homeowners	$	27,834		10.4	%	$	31,135		11.4	%		44.6	%		9.3	%		33.8	%		0.0	%		87.7	%		91.9	%	$	4,933
Auto		37,685		1.1	%		38,393		2.5	%		62.8	%		12.7	%		30.2	%		0.0	%		105.7	%		109.8	%		(1,964	)
Other (including flood)		3,036		(0.9	)%		3,508		9.8	%		74.2	%		(20.1	)%		(73.2	)%		0.0	%		(19.1	)%		8.1	%		3,832
Total	$	68,555		4.6	%	$	73,036		6.5	%		55.6	%		9.7	%		27.1	%		0.0	%		92.4	%		97.7	%	$	6,801
Standard Commercial Lines:
Commerical property	$	57,760		8.9	%	$	53,415		8.2	%		42.0	%		5.6	%		39.0	%		0.0	%		86.6	%		83.9	%	$	5,470
Workers compensation		75,405		3.0	%		66,084		0.4	%		75.6	%		15.9	%		25.6	%		1.8	%		118.9	%		110.9	%		(14,850	)
General liability		109,405		8.7	%		97,703		8.4	%		44.9	%		17.0	%		34.0	%		0.0	%		95.9	%		100.2	%		27
Auto		81,872		8.0	%		74,347		5.5	%		57.9	%		8.7	%		31.5	%		(0.1	)%		98.0	%		96.6	%		(880	)
Business owners policies		20,359		11.7	%		18,540		10.0	%		19.0	%		15.4	%		42.6	%		0.0	%		77.0	%		99.4	%		3,496
Bonds		4,954		6.7	%		4,764		2.2	%		13.7	%		3.4	%		60.9	%		0.0	%		78.0	%		88.1	%		934
Other		3,434		4.9	%		2,991		(5.6	)%		(0.7	)%		0.8	%		38.5	%		0.0	%		38.6	%		37.0	%		1,665
Total	$	353,189		7.4	%	$	317,845		5.8	%		51.4	%		12.5	%		33.4	%		0.3	%		97.6	%		98.0	%	$	(4,139	)
Total Standard Operations	$	421,744		6.9	%	$	390,881		5.9	%		52.2	%		12.0	%		32.3	%		0.3	%		96.8	%		98.0	%	$	2,662
E&S		28,380		10.0	%		30,059		209.2	%		47.9	%		15.7	%		34.6	%		0.0	%		98.2	%		120.3	%		1,134
Total Insurance Operations	$	450,124		7.1	%	$	420,940		11.1	%		51.9	%		12.2	%		32.4	%		0.3	%		96.8	%		99.1	%	$	3,796

Note: Some amounts may not foot due to rounding.

	2013		2012
Losses Paid	$	187,285	$	206,893
LAE Paid		44,989		43,536
Total Paid	$	232,274	$	250,429

SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS	Unaudited
($ in thousands, except share amounts)	March 31, 2013			December 31, 2012
ASSETS
Investments:
Fixed maturity securities, held-to-maturity – at carrying value (fair value:  $543,553 – 2013; $594,661 – 2012)	$	507,771			554,069
Fixed maturity securities, available-for-sale – at fair value (amortized cost:  $3,314,989 – 2013; $3,130,683 – 2012)		3,465,981			3,296,013
Equity securities, available-for-sale – at fair value (cost:  $143,564 – 2013; $132,441 – 2012)		174,745			151,382
Short-term investments (at cost which approximates fair value)		163,440			214,479
Other investments		109,855			114,076
Total investments		4,421,792			4,330,019
Cash		296			210
Interest and dividends due or accrued		35,254			35,984
Premiums receivable, net of allowance for uncollectible accounts of:  $4,152 – 2013; $3,906 – 2012		520,590			484,388
Reinsurance recoverables, net		788,000			1,421,109
Prepaid reinsurance premiums		134,222			132,637
Current federal income tax		—			2,569
Deferred federal income tax		105,014			119,136
Property and equipment – at cost, net of accumulated depreciation and amortization of: $171,715 – 2013; $169,428 – 2012		48,327			47,131
Deferred policy acquisition costs		158,486			155,523
Goodwill		7,849			7,849
Other assets		124,197			57,661
Total assets	$	6,344,027			6,794,216
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for loss and loss expenses	$	3,474,392			4,068,941
Unearned premiums		1,005,475			974,706
Notes payable		392,393			307,387
Current federal income tax		3,075			—
Accrued salaries and benefits		103,868			152,396
Other liabilities		228,479			200,194
Total liabilities	$	5,207,682			5,703,624
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: 98,708,185 – 2013; 98,194,224 – 2012		197,416			196,388
Additional paid-in capital		276,717			270,654
Retained earnings		1,139,111			1,125,154
Accumulated other comprehensive income		81,921			54,040
Treasury stock – at cost (shares:  43,177,212 – 2013; 43,030,776 – 2012)		(558,820	)		(555,644	)
Total stockholders’ equity		1,136,345			1,090,592
Commitments and contingencies
Total liabilities and stockholders’ equity	$	6,344,027			6,794,216

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended March 31,
($ in thousands, except per share amounts)	2013			2012
Revenues:
Net premiums earned	$	420,940			378,829
Net investment income earned		32,870			32,628
Net realized gains:
Net realized investment gains		5,304			4,779
Other-than-temporary impairments		(1,919	)		(257	)
Other-than-temporary impairments on fixed maturity securities recognized in other comprehensive income		(30	)		(164	)
Total net realized gains		3,355			4,358
Other income		2,784			3,533
Total revenues		459,949			419,348
Expenses:
Loss and loss expense incurred		269,849			252,906
Policy acquisition costs		139,528			127,958
Interest expense		5,831			4,700
Other expenses		15,873			10,593
Total expenses		431,081			396,157
Income from continuing operations, before federal income tax		28,868			23,191
Federal income tax expense (benefit):
Current		7,453			7,178
Deferred		(890	)		(2,080	)
Total federal income tax expense		6,563			5,098
Net income from continuing operations		22,305			18,093
Loss on disposal of discontinued operations, net of tax of $(538)		(997	)		—
Net income	$	21,308			18,093
Earnings per share:
Basic net income from continuing operations	$	0.40			0.33
Basic net loss from discontinued operations		(0.02	)		—
Basic net income	$	0.38			0.33
Diluted net income from continuing operations	$	0.40			0.33
Diluted net loss from discontinued operations		(0.02	)		—
Diluted net income	$	0.38			0.33
Dividends to stockholders	$	0.13			0.13

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	Quarter ended March 31,
($ in thousands)	2013			2012
Net income	$	21,308			18,093
Other comprehensive income, net of tax:
Unrealized gains on investment securities:
Unrealized holding gains arising during period		2,394			12,873
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income		24			238
Amortization of net unrealized gains on held-to-maturity securities		(413	)		(516	)
Less: reclassification adjustment for gains included in net income		(3,937	)		(2,833	)
Total unrealized gains on investment securities		(1,932	)		9,762
Defined benefit pension and post-retirement plans:
Net actuarial gain		28,600			—
Reversal of amortization items:
Net actuarial loss included in net income		1,196			903
Prior service cost included in net income		6			25
Curtailment expense included in net income		11			—
Total defined benefit pension and post-retirement plans		29,813			928
Other comprehensive income		27,881			10,690
Comprehensive income	$	49,189			28,783

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	Quarter ended March 31,
($ in thousands)	2013			2012
Common stock:
Beginning of year	$	196,388			194,494
Dividend reinvestment plan (shares:  17,314 – 2013; 22,916 – 2012)		35			46
Stock purchase and compensation plans (shares:  496,647 – 2013; 540,322 – 2012)		993			1,080
End of period		197,416			195,620
Additional paid-in capital:
Beginning of year		270,654			257,370
Dividend reinvestment plan		349			358
Stock purchase and compensation plans		5,714			4,608
End of period		276,717			262,336
Retained earnings:
Beginning of year		1,125,154			1,116,319
Net income		21,308			18,093
Dividends to stockholders ($0.13 per share – 2013 and 2012)		(7,351	)		(7,270	)
End of period		1,139,111			1,127,142
Accumulated other comprehensive income:
Beginning of year		54,040			42,294
Other comprehensive income		27,881			10,690
End of period		81,921			52,984
Treasury stock:
Beginning of year		(555,644	)		(552,149	)
Acquisition of treasury stock (shares:  146,436 – 2013; 168,614 – 2012)		(3,176	)		(3,015	)
End of period		(558,820	)		(555,164	)
Total stockholders’ equity	$	1,136,345			1,082,918

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW	Quarter ended March 31,
($ in thousands)	2013			2012
Operating Activities
Net income	$	21,308			18,093
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,148			9,748
Loss on disposal of discontinued operations		997			—
Stock-based compensation expense		3,692			3,329
Undistributed losses of equity method investments		426			764
Net realized gains		(3,355	)		(4,358	)
Retirement income plan curtailment expense		16			—
Changes in assets and liabilities:
Increase in reserves for loss and loss expense, net of reinsurance recoverables		38,556			6,311
Increase in unearned premiums, net of prepaid reinsurance and advance premiums		30,106			41,769
Decrease in net federal income taxes		5,290			4,227
Increase in premiums receivable		(36,202	)		(25,107	)
Increase in deferred policy acquisition costs		(2,963	)		(8,570	)
Decrease in interest and dividends due or accrued		384			1,108
Decrease in accrued salaries and benefits		(4,528	)		(5,356	)
Decrease in accrued insurance expenses		(12,378	)		(13,476	)
Other-net		(26,357	)		7,373
Net adjustments		6,832			17,762
Net cash provided by operating activities		28,140			35,855
Investing Activities
Purchase of fixed maturity securities, available-for-sale		(308,289	)		(226,525	)
Purchase of equity securities, available-for-sale		(2	)		(39,724	)
Purchase of other investments		(2,329	)		(2,990	)
Purchase of short-term investments		(644,274	)		(368,210	)
Purchase of subsidiary		—			255
Sale of subsidiary		225			287
Sale of fixed maturity securities, available-for-sale		6,851			14,308
Sale of short-term investments		695,313			410,780
Redemption and maturities of fixed maturity securities, held-to-maturity		28,644			38,879
Redemption and maturities of fixed maturity securities, available-for-sale		124,975			84,124
Sale of equity securities, available-for-sale		—			57,513
Distributions from other investments		3,447			5,299
Purchase of property and equipment		(3,673	)		(2,263	)
Net cash used in investing activities		(99,112	)		(28,267	)
Financing Activities
Dividends to stockholders		(6,824	)		(6,713	)
Acquisition of treasury stock		(3,176	)		(3,015	)
Net proceeds from stock purchase and compensation plans		1,164			769
Proceeds from issuance of notes payable, net of debt issuance costs		178,623			—
Repayment of notes payable		(100,000	)		—
Excess tax benefits from share-based payment arrangements		1,271			870
Net cash provided by (used in) financing activities		71,058			(8,089	)
Net increase (decrease) in cash		86			(501	)
Cash, beginning of year		210			762
Cash, end of period	$	296			261

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Balance Sheets
($ in thousands)
	Mar-31		Mar-31			Dec-31
	2013		2012			2012
ASSETS
Bonds	$	3,762,737		3,534,562			3,617,371
Common stocks		174,745		152,986			151,382
Affiliated mortgage loan		37,266		37,962			37,443
Other investments		175,873		191,227			180,110
Short-term investments		131,767		137,871			208,845
Total investments		4,282,388		4,054,608			4,195,151
Cash on hand and in banks		8,784		(33,319	)		(76,957	)
Interest and dividends due and accrued		35,235		35,381			35,979
Premiums receivable		519,114		490,119			482,227
Reinsurance recoverable on paid losses and expenses		10,369		8,565			11,354
Deferred tax recoverable		151,114		143,453			147,495
EDP equipment		1,188		1,711			1,372
Equities and deposits in pools and associations		7,838		6,520			12,734
Receivable for sold securities		35,930		21			257
Other assets		22,175		28,006			28,541
Total assets	$	5,074,135		4,735,065			4,838,153
LIABILITIES
Reserve for losses	$	2,258,016		2,170,597			2,226,858
Reinsurance payable on paid loss and loss expense		1,813		1,260			2,298
Reserve for loss expenses		434,045		423,330			427,560
Unearned premiums		871,253		800,647			842,068
Reserve for commissions payable		41,304		34,182			52,304
Ceded balances payable		51,565		15,569			271
Federal income tax payable		21,281		21,770			5,346
Premium and other taxes payable		23,226		20,419			24,604
Borrowed money		58,044		58,044			58,044
Reserve for dividends to policyholders		2,348		3,486			2,665
Reserves for unauthorized reinsurance		7,498		1,785			7,498
Payable for securities		46,296		-			7,682
Funds withheld on account of others		7,217		5,927			11,231
Accrued salaries and benefits		78,592		75,336			102,070
Other liabilities		19,678		19,539			17,547
Total liabilities		3,922,176		3,651,891			3,788,046
POLICYHOLDERS' SURPLUS
Capital		42,725		32,325			42,725
Paid in surplus		492,869		307,022			435,744
Unassigned surplus		616,365		743,827			571,638
Total policyholders' surplus		1,151,959		1,083,174			1,050,107
Total liabilities and policyholders' surplus	$	5,074,135		4,735,065			4,838,153

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Statements Of Income
($ in thousands)
	Three Months Ended
	March
UNDERWRITING	2013					2012
Net premiums written	$	450,124					420,172
Net premiums earned		420,940					378,829
Net losses paid		187,285					206,893
Change in reserve for losses		31,158					(2,430	)
Net losses incurred		218,443		51.9	%		204,463		54.0	%
Net loss expenses paid		44,989					43,536
Change in reserve for loss expenses		6,484					4,788
Net loss expenses incurred		51,473		12.2	%		48,324		12.7	%
Net underwriting expenses incurred		148,340		32.9	%		136,519		32.6	%
Total deductions		418,256					389,306
Statutory underwriting gain / (loss)		2,684					(10,477	)
Net loss from premium balances charged off		(734	)				(1,241	)
Finance charges and other income		2,932					2,961
Total other income		2,198		-0.5	%		1,720		-0.4	%
Policyholders' dividends incurred		(1,086	)	0.3	%		(914	)	0.2	%
Total underwriting gain / (loss)		3,796		96.8	%		(9,671	)	99.1	%
INVESTMENT
Net investment income earned		33,330					33,479
Net realized gain		1,212					4,358
Total income before income tax		38,338					28,166
Federal income tax expense		15,935					9,593
Net income	$	22,403					18,573
Policyholders' Surplus
Surplus, beginning of period	$	1,050,107					1,062,707
Net income		22,403					18,573
Change in deferred taxes		254					2,086
Change in unrealized gains		9,436					4,958
Dividends to stockholders		(12,120	)				(15,765	)
Change in cum. effect of acctg principle		-					44,296
Paid in surplus		57,125					-
Change in non-admitted assets		16,719					10,559
Change in additional admitted deferred taxes		-					(44,296	)
Change in Overfunded Contra Asset		(8,723	)				-
Qualified pension transitional liability		(35,725	)				-
SERP plan transitional liability		(595	)				-
PRL plan transitional liability		(1,218	)				-
Change in minimum pension liability		54,755					-
Surplus adjustments		(459	)				56
Net change in surplus for period		101,852					20,467
Surplus, end of period	$	1,151,959					1,083,174
Statutory underwriting gain / (loss)	$	3,796					(9,671	)
Adjustments under GAAP:
Deferred policy acquisition costs		2,962					8,570
Pension costs		5,925					70
Other, net		(522	)				(332	)
GAAP underwriting gain / (loss)	$	12,161					(1,363	)

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

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Alternative Investments
as of March 31, 2013
(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		2,287,839		9,369,730		525,206			0.53		0.98
Silverpeak RE III	2008		15,000,000		8,003,844		2,844,709		(61,909	)		0.03		0.44
Total - Real Estate			35,000,000		10,291,683		12,214,439		463,297			0.40		0.84
Mezzanine Financing
Neovara Euro Mezz	2004		9,000,000		-		579,578		118,830			0.98		1.02
GS Mezz V	2007		25,000,000		14,768,207		8,305,059		277,721			0.71		1.30
New Canaan V	2012		7,000,000		4,491,872		2,421,191		35,983			0.01		0.97
Centerfield Capital	2012		3,000,000		2,077,118		873,128		24,174			0.01		0.95
Total - Mezz. Financing			44,000,000		21,337,197		12,178,956		456,709			1.71		1.15
Distressed Debt
Varde VIII	2006		10,000,000		-		4,657,980		450,683			0.76		1.22
GS Distressed Opp III	2007		15,000,000		2,921,655		7,747,946		661,096			0.51		1.09
Total - Distressed Debt			25,000,000		2,921,655		12,405,926		1,111,779			0.61		1.14
Private Equity
Prospector	1997		5,000,000		-		410,216		-			2.79		2.88
Trilantic Capital Partners III	2004		10,000,000		1,415,949		1,943,240		15,597			1.57		1.78
NB Co-Invest	2006		15,000,000		1,648,664		7,802,611		(1,065	)		0.78		1.32
Trilantic Capital Partners IV	2007		11,098,351		1,632,471		7,575,504		564,823			0.79		1.51
Total - Private Equity			41,098,351		4,697,085		17,731,570		579,355			1.23		1.68
Private Equity, Secondary Market
NB SOF	2005		12,000,000		899,494		5,609,856		118,251			0.79		1.29
GS Vintage IV	2007		20,000,000		4,078,567		14,011,227		829,363			0.56		1.29
NB SOF II	2008		12,000,000		2,487,473		8,159,194		223,509			0.61		1.38
Total - Pvt. Eq. Sec. Mkt.			44,000,000		7,465,535		27,780,278		1,171,123			0.64		1.31
Energy/Power Generation
ArcLight I	2002		15,000,000		-		94,768		(4,335	)		1.80		1.81
ArcLight II	2003		15,000,000		2,295,492		1,444,221		(244,988	)		1.38		1.46
ArcLight III	2006		15,000,000		2,037,794		7,345,438		185,582			0.77		1.23
Quintana Energy	2006		10,000,000		1,204,351		6,345,705		347,630			0.56		1.28
ArcLight IV	2007		10,000,000		2,287,578		2,988,219		117,583			0.98		1.28
Total - Energy/Power Generation			65,000,000		7,825,215		18,218,351		401,472			1.18		1.44
Venture Capital
Venture V	2001		9,600,000		400,000		7,369,479		56,708			0.40		1.20
Total - Venture Capital			9,600,000		400,000		7,369,479		56,708			0.40		1.20
TOTAL - ALTERNATIVE INVESTMENTS		$	263,698,351		54,938,368		107,898,999		4,240,443			0.87		1.31
(1) Distributed to paid in ratio
(2) Total value to paid in ratio
Exhibit may not foot due to rounding

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Municipal Bond Portfolio

State and Repayment Source Composition

March 31, 2013

($  in thousands)

(unaudited)

Exposure = 36% Held-to-Maturity; 64% 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	43,245	49%	44,709	50%	1,113	1%	-	0%	89,067	7%
TX-PSF	-	0%	-	0%	-	0%	25,922	100%	25,922	2%
WA	51,270	50%	43,178	43%	7,114	7%	-	0%	101,562	8%
NY	71,276	91%	7,281	9%	-	0%	-	0%	78,557	6%
AZ	58,799	88%	8,320	12%	-	0%	-	0%	67,119	5%
FL	52,441	84%	-	0%	9,885	16%	-	0%	62,326	5%
CO	21,680	40%	33,168	60%	-	0%	-	0%	54,848	4%
OH	20,459	43%	13,050	28%	13,893	29%	-	0%	47,402	3%
NC	24,015	55%	13,651	31%	6,166	14%	-	0%	43,832	3%
CA	34,528	91%	3,445	9%	-	0%	-	0%	37,973	3%
MO	20,233	55%	16,725	45%	-	0%	-	0%	36,958	3%
Pre-refunded	54,158	50%	43,468	40%	7,816	7%	3,528	3%	108,970	8%
Other	335,551	58%	122,776	21%	118,220	21%	-	0%	576,547	43%
Grand Total	787,655	59%	349,771	26%	164,207	13%	29,450	2%	1,331,083	100%

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Credit Quality of Available-for-Sale Fixed Maturity Securities
March 31, 2013
($ in millions)
(unaudited)
	Fair Value		Unrealized Gain (Loss)		Weighted Average Credit Quality
AFS Fixed Maturity Portfolio:
U.S. government obligations	$	245.7		15.9	AA+
Foreign government obligations		30.2		1.4	AA-
State and municipal obligations		849.9		39.6	AA
Corporate securities		1,532.8		76.4	A
Mortgage-backed securities ("MBS")		635.5		15.8	AA
Asset-backed securities ("ABS")		171.9		1.9	AAA
Total AFS fixed maturity portfolio	$	3,466.0		151.0	AA-
State and Municipal Obligations:
Government obligations	$	380.9		18.3	AA+
Special revenue obligations		469.0		21.3	AA
Total state and municipal obligations	$	849.9		39.6	AA
Corporate Securities:
Financial	$	422.3		21.1	A
Industrials		125.5		8.0	A-
Utilities		134.2		6.6	A-
Consumer discretionary		173.6		8.1	A-
Consumer staples		168.1		8.0	A
Healthcare		182.5		10.0	A+
Materials		87.1		4.8	A-
Energy		80.5		3.6	A-
Information technology		94.9		3.1	A
Telecommunications services		56.1		2.3	BBB+
Other		8.0		0.8	AA+
Total corporate securities	$	1,532.8		76.4	A
MBS:
Government guaranteed agency commercial MBS ("CMBS")	$	42.3		1.8	AA+
Other-agency CMBS		9.5		-	AA+
Non-agency CMBS		94.8		0.6	AA
Government guaranteed agency residential MBS ("RMBS")		85.0		2.9	AA+
Non-agency RMBS		44.9		0.9	A-
Other Agency RMBS		353.1		9.4	AA+
Alternative-A ("Alt-A") RMBS		5.9		0.2	A+
Total MBS	$	635.5		15.8	AA
ABS:
ABS	$	170.6		1.7	AAA
Alt-A ABS2		0.8		0.1	D
Sub-prime ABS1,2		0.5		0.1	D
Total ABS	$	171.9		1.9	AAA

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

2  Alt-A ABS and sub-prime ABS each consist of one security whose issuer 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, 2013
($ in millions)
(unaudited)
	Fair Value		Carry Value		Unrecognized Holding Gain		Unrealized Gain (Loss) in Accumulated  Other Comprehensive Income			Total Unrealized/  Unrecognized Gain (Loss)			Weighted Average Credit Quality
HTM Fixed Maturity Portfolio:
Foreign government obligations	$	5.7		5.5		0.2		0.2			0.4		AA+
State and municipal obligations		481.2		454.3		26.9		5.6			32.5		AA
Corporate securities		39.6		35.3		4.3		(0.7	)		3.6		A
MBS		10.2		6.9		3.3		(1.1	)		2.2		AA
ABS		6.9		5.8		1.1		(1.0	)		0.1		A
Total HTM portfolio	$	543.6		507.8		35.8		3.0			38.8		AA
State and Municipal Obligations:
Government obligations	$	160.1		152.1		8.0		3.1			11.1		AA
Special revenue obligations		321.1		302.2		18.9		2.5			21.4		AA
Total state and municipal obligations	$	481.2		454.3		26.9		5.6			32.5		AA
Corporate Securities:
Financial	$	9.6		8.5		1.1		(0.5	)		0.6		BBB+
Industrials		11.8		10.3		1.5		(0.2	)		1.3		A+
Utilities		15.1		13.4		1.7		(0.1	)		1.6		A+
Consumer discretionary		3.1		3.1		-		0.1			0.1		AA
Total corporate securities	$	39.6		35.3		4.3		(0.7	)		3.6		A
MBS:
Non-agency CMBS	$	10.2		6.9		3.3		(1.1	)		2.2		AA
Total MBS	$	10.2		6.9		3.3		(1.1	)		2.2		AA
ABS:
ABS	$	4.4		4.0		0.4		(0.2	)		0.2		BBB+
Alt-A ABS		2.5		1.8		0.7		(0.8	)		(0.1	)	AAA
Total ABS	$	6.9		5.8		1.1		(1.0	)		0.1		A