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

Exhibit 99.2

Supplemental Investor Package

First Quarter 2009

Investor Contact:

Jennifer DiBerardino

Vice President, Investor Relations

Tel:  973-948-1364

jennifer.diberardino@selective.com

SELECTIVE INSURANCE GROUP, INC.
FIRST QUARTER 2009 INVESTOR PACKET
TABLE OF CONTENTS
Earnings Press Release		2
Selected Balance Sheet Data		7
Selected Income Statement Data		8
Quarterly Investment Income		9
Statutory Combined Ratio Summary by LOB Quarter		10
Consolidated Balance Sheets		11
Consolidated Statements of Income		12
Consolidated Statements of Stockholder’s Equity		13
Consolidated Statements of Cash Flow		14
Statutory Balance Sheets		15
Statutory Statements of Income		16
Investment Portfolio – Appendix
	Municipal Fixed Income Portfolio Exhibit	17
	Ratings on Municipal Fixed Income Portfolio Exhibit	18
	Structured Securities Chart	19
	Structured Securities Ratings Migration	20
	RMBS & RABS Chart	21
	RMBS & RABS by Vintage Year Exhibit	22
	RMBS and RABS by Type Exhibit	23
	RMBS & RABS Ratings Migrations	24
	CMBS Chart	25
	CMBS by Vintage Year Exhibit	26
	CMBS by Type Exhibit	27
	CMBS Ratings Migration	28
	2007 Vintage CMBS Chart	29
	2007 Vintage CMBS Exhibit	30
	2005 & 2006 Vintage CMBS Exhibit	31
	2005 & 2006 Vintage CMBS Exhibit	32
	Alt-A RMBS Chart	33
	Alt-A by Vintage Year Exhibit	34
	Fixed Income Government & Agency Exposure Exhibit	35
	Fixed Maturities Severity & Duration of Unrealized/Unrecognized Losses Exhibit	36
	Credit Quality of AFS Securities Exhibit	37
	Credit Quality of HTM Securities Exhibit	38

Selective Insurance Group, Inc.
Selected Balance Sheet Data (unaudited)
($ in thousands, except per share amounts)
		March 31,				March 31,				December 31,
		2009				2008				2008
				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	$	1,053,477	1,047,586	(97,934)	$	1,251,910	1,251,913	(26,416)	$	1,024,179	1,024,181	(124,294)
Gov't\ Municipal bonds2		2,072,518	2,059,462	59,158		1,774,064	1,774,186	31,862		2,011,262	2,011,275	35,240
Total bonds		3,125,995	3,107,048	(38,776)		3,025,974	3,026,099	5,446		3,035,441	3,035,456	(89,054)
Equities		94,472	94,472	(5,226)		232,787	232,787	85,613		132,131	132,131	6,184
Short-term investments		271,277	271,277	-		212,616	212,616	-		198,111	198,111	-
Trading securities		-	-	-		23,148	23,148	5,861		2,569	2,569	(1,216)
Other investments		153,337	153,337	(16,192)		197,097	197,097	26,109		172,057	172,057	(5,585)
Total invested assets		3,645,081	3,626,134	(60,194)		3,691,622	3,691,747	123,029		3,540,309	3,540,324	(89,671)
Invested assets per $ of stockholders' equity		4.00				3.53				3.98
Total assets		5,001,933				4,970,486				4,941,332
Liabilities:
Reserve for losses		2,273,947				2,199,024				2,256,329
Reserve for loss expenses		390,890				368,274				384,644
Unearned premium reserve		856,823				850,494				844,334
Total liabilities		4,091,798				3,924,794				4,050,839
Stockholders' equity		910,135				1,045,692				890,493
Total debt to capitalization ratio		23.1%				21.5%				23.5%
Adjusted total debt to capitalization ratio 3		16.7%				15.0%				17.0%
Book value per share		17.23				19.62				16.84
Book value per share excluding
FAS 115 unrealized gain or loss on bond portfolio		17.47				19.55				17.94
NPW per insurance segment employee		783				823				797
Statutory premiums to surplus ratio		1.8x				1.5x				1.7x
Statutory surplus		849,985				1,016,282				884,431
1 Includes mortgage-backed and asset backed securities.
2 Certain prior year amounts were reclassified to conform with currrent year presentation.
3 The adjusted debt to capitalization ratio reflects a reduction in debt for amounts held in an irrevocable trust for the benefit of senior note holders as well as the median rating agency equity treatment of 75% applied to our $100 million Junior Subordinated Notes issued September 25, 2006.

Selective Insurance Group, Inc.
Selected Income Statement Data (unaudited)
March 2009			THREE MONTHS ENDED MARCH 31,
($ in thousands, except per share amounts)			2009					2008
					Per diluted share					Per diluted share
Consolidated
	Revenue	$	369,565			$		439,047
	Operating income		2,739		0.05			19,518		0.36
	Net realized (losses) gains, after tax		(15,616	)	(0.30	)		985		0.02
	Net (loss) income		(12,877	)	(0.25	)		20,503		0.38
	Operating return on equity		1.2%					7.4%
Insurance Operations
	Gross premiums written		436,441					443,979
	Net premiums written		375,783					391,954
	Net premiums earned		363,873					383,387
	Underwriting (loss) profit - before tax		(2,963	)				1,799
	- after tax		(1,926	)	(0.04	)		1,169		0.02
	GAAP combined ratio		100.8%					99.5%
Commercial lines
	Net premiums earned		311,545					332,091
	GAAP combined ratio		100.1%					98.3%
Personal lines
	Net premiums earned		52,328					51,296
	GAAP combined ratio		105.3%					107.3%
Investments
	Net investment income - before tax		15,717					37,866
	- after tax		15,141		0.29			29,371		0.55
	Effective tax rate		3.7%					22.4%
	Annual after-tax yield on investment portfolio		1.7%					3.2%
	Annual after-tax, after-interest expense yield		1.3%					2.8%
	Invested assets per $ of stockholders' equity		4.00					3.53
Human Resource Administration Outsourcing
	Annual gross billings		917,256					988,002
	Revenue		12,719					15,118
	Income - after tax		73		0.00			507		0.01
	Return on revenue		0.6%					3.4%
	Worksite lives		20,381					24,017
Other expenses (net of other income)
	Interest expense - before tax		(5,024	)				(5,309	)
	- after tax		(3,266	)	(0.06	)		(3,451	)	(0.06)
	Other - after tax	$	(7,283	)	(0.14	)	$	(8,078	)	(0.16)
Diluted weighted avg shares outstanding			52,352					53,882

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Quarterly
GAAP Investment Income (unaudited)
($ in thousands)
		For the three months ended						%
		March			March			Increase
		2009			2008			(Decrease)
Investment Income:
	Interest:
	Fixed Maturity Securities		36,261			36,406			(0.4	)
	Short-term		612			1,437			(57.4	)
	Alternative Investments		(20,549	)		1,833			N/M
	Dividends		515			1,159			(55.6	)
	Change in Fair Value		262			(1,888	)		113.9
	Miscellaneous		172			74			132.4
			17,273			39,021			(55.7	)
Investment Expense			1,556			1,155			34.7
Net Investment Income Before Tax			15,717			37,866			(58.5	)
Tax			576			8,495			(93.2	)
Net Investment Income After Tax		$	15,141			29,371			(48.4	)
Net Investment Income per Share			0.29			0.55			(47.3	)
Effective Tax Rate			3.7	%		22.4	%
Average Yields:
Fixed Maturity Securities
	Pre Tax		4.3	%		4.6	%
	After Tax		3.4	%		3.6	%
Portfolio
	Pre Tax		1.7	%		4.1	%
	After Tax		1.7	%		3.2	%

			Year to Date
			March		March
Net Realized Gains (Losses)			2009		2008
	Fixed Maturities Gains		$4,533		$543
	Fixed Maturities Losses		(28,368	)	(1,154	)
	Total Fixed Maturities		(23,835	)	(611	)
	Equity Securities Gains		19,663		2,597
	Equity Securities Losses		(19,853	)	(471	)
	Total Equity Securities		(190	)	2,126
	Total		(24,025	)	1,515
	Net of Tax		(15,616	)	985
	(1)	Certain prior year amounts were reclassified to conform with current year presentation.

Selective Insurance Group, Inc.
2009 Statutory Results by Line of Business
March 2009 YTD (unaudited)
($ in thousands)
	Net Premiums Written		Percent Change			Net Premiums Earned		Percent Change			Loss Ratio			LAE Ratio			Underwriting Expense Ratio			Dividends to Policyholders Ratio			Combined Ratio 2009			Combined Ratio 2008			Underwriting Gain/(Loss)
Personal Lines:
Homeowners	$	15,351		8.8	%	$	17,106		3.2	%		84.1	%		8.7	%		37.4	%		0.0	%		130.2	%		111.8	%	$	(4,508	)
Auto		32,639		(2.8	)%		32,852		0.8	%		56.3	%		13.8	%		30.5	%		0.0	%		100.6	%		113.4	%	$	(134	)
Other (including flood)		2,352		13.6	%		2,371		11.9	%		75.7	%		(10.9	)%		(31.4	)%		0.0	%		33.4	%		1.1	%		1,573
Total	$	50,342		1.2	%	$	52,328		2.0	%		66.3	%		11.0	%		29.7	%		0.0	%		107.0	%		107.8	%	$	(3,069	)
Commercial Lines:
Fire/IM	$	50,234		4.1	%	$	48,885		(2.1	)%		59.5	%		4.8	%		37.3	%		(0.6	)%		101.0	%		96.6	%	$	(995	)
Workers compensation		72,176		(10.1	)%		70,377		(10.3	)%		51.5	%		14.6	%		24.6	%		1.8	%		92.5	%		94.5	%		4,836
General liability		99,804		(10.3	)%		94,224		(8.8	)%		54.0	%		18.2	%		32.5	%		(0.3	)%		104.4	%		97.1	%		(5,927	)
Auto		79,859		(0.4	)%		75,846		(4.3	)%		60.6	%		7.2	%		28.6	%		(0.3	)%		96.1	%		100.1	%		1,772
BOP		16,377		7.8	%		15,210		7.6	%		71.8	%		12.2	%		33.8	%		0.0	%		117.8	%		105.1	%		(3,099	)
Bonds		4,339		(4.3	)%		4,623		(3.2	)%		23.1	%		4.9	%		59.4	%		0.0	%		87.4	%		81.1	%		750
Other		2,652		7.9	%		2,380		4.4	%		(2.1	)%		0.8	%		43.1	%		0.0	%		41.8	%		47.9	%		1,268
Total	$	325,441		(4.9	)%	$	311,545		(6.2	)%		55.9	%		12.0	%		31.1	%		0.1	%		99.1	%		96.9	%	$	(1,394	)
Grand Total	$	375,783		(4.1	)%	$	363,873		(5.1	)%		57.4	%		11.9	%		30.8	%		0.1	%		100.2	%		98.3	%	$	(4,463	)
Note: Some amounts may not foot due to rounding.
			2009			2008
	Losses Paid		$	195,792		$	188,840
	LAE Paid			36,685			34,461
	Total Paid		$	232,477		$	223,301

SELECTIVE INSURANCE GROUP, INC.	Unaudited
CONSOLIDATED BALANCE SHEETS	March 31,			December 31,
($ in thousands, except share amounts)	2009			2008
ASSETS
Investments:
Fixed maturity securities, held-to-maturity – at amortized cost
(fair value of:  $1,867,519 – 2009; $1,178 – 2008)	$	1,886,466			1,163
Fixed maturity securities, available-for-sale – at fair value
(amortized cost of:  $1,265,228 – 2009; $3,123,346 – 2008)		1,239,529			3,034,278
Equity securities, available-for-sale – at fair value
(cost of:   $99,698 – 2009; $125,947 – 2008)		94,472			132,131
Short-term investments – at cost which approximates fair value		271,277			198,111
Equity securities, trading – at fair value		-			2,569
Other investments		153,337			172,057
Total investments		3,645,081			3,540,309
Cash and cash equivalents		12,631			18,643
Interest and dividends due or accrued		35,555			36,538
Premiums receivable, net of allowance for uncollectible
accounts of:  $5,251 – 2009; $4,237 – 2008		483,237			480,894
Other trade receivables, net of allowance for uncollectible
accounts of:  $306 – 2009; $299 – 2008		21,799			19,461
Reinsurance recoverable on paid losses and loss expenses		5,262			6,513
Reinsurance recoverable on unpaid losses and loss expenses		228,303			224,192
Prepaid reinsurance premiums		97,196			96,617
Current federal income tax		2,483			26,327
Deferred federal income tax		140,484			146,801
Property and equipment – at cost, net of accumulated
depreciation and amortization of:  $135,712 – 2009; $132,609 – 2008		49,706			51,697
Deferred policy acquisition costs		213,669			212,319
Goodwill		29,637			29,637
Other assets		36,890			51,384
Total assets	$	5,001,933			4,941,332
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for losses	$	2,273,947			2,256,329
Reserve for loss expenses		390,890			384,644
Unearned premiums		856,823			844,334
Notes payable		273,885			273,878
Commissions payable		31,653			48,560
Accrued salaries and benefits		125,139			147,050
Other liabilities		139,461			96,044
Total liabilities		4,091,798			4,050,839
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:  95,376,045 – 2009; 95,263,508 – 2008		190,752			190,527
Additional paid-in capital		221,835			217,195
Retained earnings		1,108,335			1,128,149
Accumulated other comprehensive income		(63,420	)		(100,666	)
Treasury stock – at cost (shares:  42,556,303 – 2009;  42,386,921 – 2008)		(547,367	)		(544,712	)
Total stockholders' equity		910,135			890,493
Commitments and contingencies
Total liabilities and stockholders' equity	$	5,001,933			4,941,332

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME		Quarters ended
		March 31,
($ in thousands, except per share amounts)		2009			2008
Revenues:
Net premiums written		$	375,783			391,954
Net increase in unearned premiums and prepaid reinsurance premiums	��		(11,910	)		(8,567	)
Net premiums earned			363,873			383,387
Net investment income earned			15,717			37,866
Net realized (losses) gains			(24,025	)		1,515
Other income			14,000			16,279
Total revenues			369,565			439,047
Expenses:
Losses incurred			209,089			210,130
Loss expenses incurred			43,105			42,946
Policy acquisition costs			113,106			127,677
Dividends to policyholders			465			535
Interest expense			5,024			5,309
Other expenses			19,698			25,848
Total expenses			390,487			412,445
(Loss) income before federal income tax			(20,922	)		26,602
Federal income tax (benefit) expense:
Current			5,694			11,135
Deferred			(13,739	)		(5,036	)
Total federal income tax (benefit) expense			(8,045	)		6,099
Net (loss) income		$	(12,877	)		20,503
Earnings per share:
Basic net (loss) income		$	(0.25	)		0.39
Diluted net (loss) income		$	(0.25	)		0.38
Dividends to stockholders		$	0.13			0.13

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
	Quarters ended March 31,
($ in thousands, except per share amounts)	2009					2008
Common stock:
Beginning of year	$	190,527					189,306
Dividend reinvestment plan
(shares: 36,670 – 2009; 19,298 – 2008)		73					38
Convertible debentures
(shares: 45,759 – 2008)		-					92
Stock purchase and compensation plans
(shares: 75,867 – 2009; 133,339 – 2008)		152					267
End of period		190,752					189,703
Additional paid-in capital:
Beginning of year		217,195					192,627
Dividend reinvestment plan		373					429
Convertible debentures		-					645
Stock purchase and compensation plans		4,267					10,088
End of period		221,835					203,789
Retained earnings:
Beginning of year		1,128,149					1,105,946
Cumulative-effect adjustment due to adoption of FAS 159,
net of deferred income tax effect of $3,344		-					6,210
Net (loss) income		(12,877	)	(12,877	)		20,503		20,503
Cash dividends to stockholders ($0.13 per share – 2009;
$0.13 per share – 2008)		(6,937	)				(7,062	)
End of period		1,108,335					1,125,597
Accumulated other comprehensive (loss) income:
Beginning of year		(100,666	)				86,043
Cumulative-effect adjustment due to adoption of FAS 159,
net of deferred income tax effect of $(3,344)		-					(6,210	)
Other comprehensive income (loss) increase (decrease) in:
Net unrealized gains (losses) on investment securities,
net of deferred income tax effect of
$20,152 – 2009, $(14,357) – 2008		37,425		37,425			(26,663	)	(26,663	)
Defined benefit pension plans, net of deferred income tax effect of
$(97) – 2009; $19 – 2008		(179	)	(179	)		35		35
End of period		(63,420	)				53,205
Comprehensive income (loss)				24,369					(6,125	)
Treasury stock:
Beginning of year		(544,712	)				(497,879	)
Acquisition of treasury stock
(shares: 169,382 – 2009; 1,196,663 – 2008)		(2,655	)				(28,723	)
End of period		(547,367	)				(526,602	)
Total stockholders’ equity	$	910,135					1,045,692

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW	Quarters ended March 31,
($ in thousands)	2009	2008

Operating Activities
Net (loss) income	$	(12,877	)	20,503
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		6,788		7,129
Stock-based compensation expense		3,238		8,896
Undistributed losses of equity method investments		20,549		980
Net realized losses (gains)		24,025		(1,515	)
Postretirement life curtailment benefit		(4,217	)	-
Deferred tax benefit		(13,739	)	(5,036	)
Unrealized (gain) loss on trading securities		(262	)	1,888
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverable
on unpaid losses and loss expenses		20,019		29,598
Increase in unearned premiums, net of prepaid reinsurance and advance premiums		11,497		8,295
Decrease/increase in net federal income tax recoverable/payable		23,844		9,854
Increase in premiums receivable		(2,343	)	(185	)
Increase in other trade receivables		(2,338	)	(618	)
(Increase) Decrease in deferred policy acquisition costs		(1,350	)	876
Decrease in interest and dividends due or accrued		1,012		1,033
Decrease in reinsurance recoverable on paid losses and loss expenses		1,251		122
Decrease in accrued salaries and benefits		(16,211	)	(11,724	)
Decrease in accrued insurance expenses		(14,221	)	(24,950	)
Purchase of trading securities		-		(4,530	)
Sale of trading securities		2,831		4,696
Other-net		7,424		641
Net adjustments		67,797		25,450
Net cash provided by operating activities		54,920		45,953
Investing Activities
Purchase of fixed maturity securities, held-to-maturity		(50,408	)	-
Purchase of fixed maturity securities, available-for-sale		(216,000	)	(77,944	)
Purchase of equity securities, available-for-sale		(60,100	)	(7,212	)
Purchase of other investments		(4,620	)	(15,506	)
Purchase of short-term investments		(601,637	)	(341,234	)
Sale of fixed maturity securities, available-for-sale		168,019		30,452
Sale of short-term investments		528,471		318,696
Redemption and maturities of fixed maturity securities, held-to-maturity		34,097		1,492
Redemption and maturities of fixed maturity securities, available-for-sale		51,666	��	79,566
Sale of equity securities, available-for-sale		86,318		6,995
Proceeds from other investments		14,499		2,609
Purchase of property and equipment		(1,360	)	(1,825	)
Net cash used in investing activities		(51,055	)	(3,911	)
Financing Activities
Dividends to stockholders		(6,955	)	(6,572	)
Acquisition of treasury stock		(2,655	)	(28,723	)
Net proceeds from stock purchase and compensation plans		885		2,196
Excess tax benefits from share-based payment arrangements		(1,152	)	1,265
Principal payments of convertible debt		-		(8,754	)
Net cash used in financing activities		(9,877	)	(40,588	)
Net (decrease) increase in cash and cash equivalents		(6,012	)	1,454
Cash and cash equivalents, beginning of year		18,643		8,383
Cash and cash equivalents, end of period	$	12,631		9,837

Supplemental Disclosures of Cash Flow Information

Cash paid (received) during the year for:
Interest	$	$1,875		1,968
Federal income tax		(17,000	)	-
Supplemental schedule of non-cash financing activity:
Conversion of convertible debentures		-		169

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Balance Sheets
($ in thousands)
	March 31			December 31
	2009			2008*
ASSETS
Bonds	$	3,112,564			3,104,395
Common stocks		94,472			134,700
Affiliated mortgage loan		39,855			40,000
Other investments		153,634			172,346
Short-term investments		209,957			137,878
Total investments		3,610,482			3,589,319
Cash on hand and in banks		(32,603	)		(36,472	)
Interest and dividends due and accrued		35,716			36,523
Premiums receivable		480,317			476,768
Reinsurance recoverable on paid losses and expenses		5,262			6,513
Federal income tax recoverable		-			12,069
Deferred tax recoverable		88,964			86,208
EDP equipment		3,246			3,815
Equities and deposits in pools and associations		8,220			8,517
Receivable for sold securities		1,355			13,278
Capital contribution receivable		20,000			-
Other assets		26,317			28,719
Total assets	$	4,247,276			4,225,257
LIABILITIES
Reserve for losses	$	2,045,009			2,031,947
Reinsurance payable on paid loss and loss expense		912			716
Reserve for loss expenses		389,245			382,796
Unearned premiums		759,627			747,717
Reserve for commissions payable		31,653			48,560
Ceded balances payable		10,840			8,421
Federal income tax payable		14,515			-
Premium and other taxes payable		23,407			20,721
Reserve for dividends to policyholders		4,134			5,023
Reserves for unauthorized/overdue reinsurance		1,416			1,416
Payable for securities		36,149			-
Funds withheld on account of others		6,210			4,977
Accrued salaries and benefits		57,511			74,287
Other liabilities		16,663			14,245
Total liabilities		3,397,291			3,340,826
POLICYHOLDERS' SURPLUS
Capital		28,325			28,325
Paid in surplus		235,792			235,792
Unassigned surplus		585,868			620,314
Total policyholders' surplus		849,985			884,431
Total liabilities and policyholders' surplus	$	4,247,276			4,225,257
*December 31, 2008 results include a retroactive affiliate transaction involving Selective Insurance Company of America, Selective Insurance Group, Inc., and Wantage Avenue Holding Company, Inc.

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Statements Of Income
($ in thousands)
	Three Months Ended
				March
UNDERWRITING	2009						2008
Net premiums written	$	375,783						391,953
Net premiums earned		363,873						383,387
Net losses paid		195,792						188,840
Change in reserve for losses		13,062						21,284
Net losses incurred		208,854			57.4	%		210,124		54.8	%
Net loss expenses paid		36,685						34,461
Change in reserve for loss expenses		6,451						8,279
Net loss expenses incurred		43,136			11.9	%		42,740		11.1	%
Net underwriting expenses incurred		115,813			30.8	%		126,486		32.3	%
Total deductions		367,803						379,350
Statutory (loss) gain		(3,930	)					4,037
Net loss from premium balances charged off		(1,334	)					(653	)
Finance charges and other income		1,266						691
Total other (expense) income		(68	)		0.0	%		38		0.0	%
Policyholders' dividends incurred		(465	)		0.1	%		(535	)	0.1	%
Total underwriting (loss) gain		(4,463	)		100.2	%		3,540		98.3	%
INVESTMENT
Net investment income earned		26,054						40,248
Net realized (loss) gain		(24,978	)					3,320
Total (loss) income before income tax		(3,387	)					47,108
Federal income tax expense		9,584						14,694
Net (loss) income	$	(12,971	)					32,414
Policyholders' Surplus
Surplus, beginning of period	$	884,431						1,034,294
Net (loss) income		(12,971	)					32,414
Change in deferred tax		15,052						1,411
Change in unrealized (losses)		(22,061	)					(18,115	)
Dividends to stockholders		(12,003	)					(24,540	)
Paid in surplus		20,000						-
Change in non-admitted assets		(22,463	)					(9,087	)
Surplus adjustments		-						(95	)
Net change in surplus for period		(34,446	)					(18,012	)
Surplus, end of period	$	849,985						1,016,282
Statutory underwriting (loss) gain:	$	(4,463	)					3,540
Adjustments under GAAP:
Deferred policy acquisition costs		1,351						(876	)
Other, net		149						(865	)
GAAP underwriting (loss) gain	$	(2,963	)					1,799
Note: Some amounts or ratios may not foot due to rounding.
Certain amounts have been reclassified to conform to the current year's presentation.

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Municipal Fixed Income Portfolio as of March 31, 2009
($ in millions)
(unaudited)
	Average	Market		% of Total			Unrealized/ Unrecognized
	Credit Rating	Value		Muni Portfolio			Gain/(Loss)
Uninsured Securities	AA+		908		53	%		$26
Securities with Insurance Enhanced1	AA+		807		47	%		22
Without Insurance Enhancement	AA-
Total		$	1,715		100	%		$48

1 Includes $25.7 million of unrated municipal fixed income securities which are considered to be investment grade.

A "BBB-" rating has been applied to these municipal fixed income securities in the interest of conservatism.

Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Ratings on Municipal Fixed Income Portfolio
March 31, 2009
($ in millions)
(unaudited)
	Uninsured Securities (1)		Insurance Enhanced Securities1 (2)		Underlying Rating of Insurance Enhanced Securities1 (3)		Total Municipal Fixed Income Portfolio (with Insurance Enhancement) (1) + (2)		Total Municipal Fixed Income Portfolio (without Insurance Enhancement) (1) + (3)
Ratings	Market Value	% of Total	Market Value	% of Total	Market Value	% of Total	Market Value	% of Total	Market Value	% of Total
AAA	$      481	53%	$      221	27%	$       63	8%	$       702	41%	$       545	32%
AA+	150	16%	85	11%	102	13%	235	14%	252	15%
AA	151	17%	111	14%	142	17%	261	16%	292	17%
AA-	70	8%	327	41%	242	30%	398	23%	313	18%
A+	28	3%	10	1%	87	11%	39	2%	115	7%
A	-	0%	40	5%	75	9%	40	2%	75	4%
A-	18	2%	10	1%	57	7%	28	2%	75	4%
BBB+	1	0%	3	0%	9	1%	4	0%	9	1%
BBB	7	1%	-	0%	-	0%	7	0%	7	0%
BBB-	-	0%	-	0%	30	4%	-	0%	30	2%
BB+	2	0%	-	0%	-	0%	2	0%	2	0%
Total	$      908	100%	$      807	100%	$      807	100%	$     1,715	100%	$     1,715	100%
Average Rating:		AA+		AA+		AA-		AA+	AA
Unrealized/Unrecognized Gain/(Loss):	26		22				48

1 Includes $25.7 million of unrated municipal fixed income securities which are considered to be investment grade.

A "BBB-" rating has been applied to these municipal fixed income securities in the interest of conservatism.

Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Structured Securities

March 31, 2009

($ in thousands)

(unaudited)

•Market Value = $608,564 ; Unrealized Gain/(Loss) = ($81,370)

•Held to Maturity (HTM) 50%; Available for Sale (AFS) 50%

•Structured Security Portfolio Average Rating =   AA+

•Structured Securities = 16.8% of the Total Portfolio

Selective Insurance Group Inc. and Consolidated Subsidiaries
Structured Securities
Ratings Migration (1)
March 31, 2009
($ in thousands)
(unaudited)
Original Rating		Current Rating
Rating	Amount	AAA	AA	A	BBB	BB	B	CC
AAA	$                  567,592	529,172	6,954	8,549	14,811	6,722	1,384	-
AA	25,452	4,796	17,432	2,028	-	291	-	905
A	9,881	-	-	9,881	-	-	-	-
BBB	2,889	-	-	-	2,580	309	-	-
BB	2,750	-	-	-	-	2,750	-	-
Total Market Value	$                  608,564	533,968	24,386	20,458	17,391	10,072	1,384	905
Note (1): Migration period is from the purchase date of each security to March 31, 2009

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Residential Mortgage Backed (RMBS) and Residential ABS (RABS) Securities

March 31, 2009

($ in thousands)

(unaudited)

 

•Market Value = $380,840; Unrealized Gain/(Loss) = ($38,135)

•Held to Maturity (HTM) 45%; Available for Sale (AFS) 55%

•RMBS & RABS Portfolio Average Rating = AA+

•RMBS & RABS Securities = 10.5% of the Total Portfolio

Selective Insurance Group Inc. and Consolidated Subsidiaries

Residential Mortgage Backed Securities (RMBS) and Residential ABS (RABS)- by Vintage Year

March 31, 2009

 ($ in thousands)

(unaudited)

Market Value

Vintage Yr	AAA			AA			A			BBB			BB				B		CC			Total			% of Total RMBS & RABS			% of Total Fixed Income Portfolio			% of Total GAAP Equity
1983	$	16		$	-		$	-		$	-		$	-		$	-		$	-		$	16			0	%		0	%		0	%
2002		60,840			-			1,927			-			-			-			-			62,767			16	%		2	%		7	%
2003		60,357			-			904			-			-			-			-			61,262			16	%		2	%		7	%
2004		42,712			1,426			-			-			-			-			-			44,138			12	%		1	%		5	%
2005		50,689			-			-			-			-			-			-			50,689			13	%		2	%		6	%
2006		69,051			4,193			-			11,427			6,468			1,384			905			93,428			25	%		3	%		10	%
2007		9,427			1,620			2,483			411			-			-			-			13,942			4	%		0	%		1	%
2008		28,537			-			-			-			-			-			-			28,537			7	%		1	%		3	%
2009		26,060			-			-			-			-			-			-			26,060			7	%		1	%		3	%
Total RMBS & RABS-Market Value	$	347,691		$	7,239		$	5,314		$	11,838		$	6,468		$	1,384		$	905		$	380,840			100	%		12	%		42	%
% of Total RMBS & RABS		91	%		2	%		2	%		3	%		2	%		0	%		0	%		100	%
% of Total Fixed Income Portfolio		11	%		0	%		0	%		1	%		0	%		0	%		0	%		12	%
% of Total GAAP Equity		38	%		1	%		1	%		1	%		1	%		0	%		0	%		42	%
Weighted Average Market Price		90.9			61.5			30.6			60.7			43.1			46.1			10.0			83.1
Unrealized/Unrecognized Gain/(Loss)
Vintage Yr	AAA			AA				A		BBB			BB				B		CC			Total
1983	$	1		$	-		$	-		$	-		$	-		$	-		$	-		$	1
2002		1,237			-			(457	)		-			-			-			-			781
2003		160			-			(1,431	)		-			-			-			-			(1,271	)
2004		(1,822	)		(384	)		-			-			-			-			-			(2,206	)
2005		(12,761	)		-			-			-			-			-			-			(12,761	)
2006		(8,781	)		(1,982	)		-			(87	)		(2,101	)		(754	)		-			(13,705	)
2007		102			(1,075	)		(8,439	)		(308	)		-			-			-			(9,721	)
2008		638			-			-			-			-			-			-			638
2009		109			-			-			-			-			-			-			109
Total RMBS & RABS - Unrealized/Unrecognized	$	(21,117	)	$	(3,441	)	$	(10,327	)	$	(395	)	$	(2,101	)	$	(754	)	$	-		$	(38,135	)
% of Total RMBS & RABS		55	%		9	%		27	%		1	%		6	%		2	%		0	%		100	%
Note: Some amounts may not foot due to rounding.

Selective Insurance Group Inc. and Consolidated Subsidiaries

Residential Mortgage Backed Securities (RMBS) and Residential ABS (RABS)- by Type

March 31, 2009

($ in thousands)

(unaudited)

Market Value

RMBS Type	AAA			AA				A		BBB			BB				B		CC			Total			% of Total RMBS & RABS			% of Total Fixed Income Portfolio			% of Total GAAP Equity
Agency	$	260,221		$	-		$	-		$	-		$	-		$	-		$	-		$	260,221			68	%		9	%		29	%
FHA/VA		10,252			-			-			-			-			-			-			10,252			3	%		0	%		1	%
Total Agency		270,473			-			-			-			-			-			-			270,473			71	%		9	%		30	%
Alt-A		30,289			1,426			-			3,210			3,571			1,384			-			39,880			10	%		1	%		4	%
Alt-A CDO		-			-			-			-			-			-			905			905			0	%		0	%		0	%
Home Equity ABS		-			-			1,927			-			-			-			-			1,927			1	%		0	%		0	%
Non-Agency & Other Prime		46,929			5,814			3,387			8,628			2,897			-			-			67,656			18	%		2	%		8	%
Total RMBS & RABS-Market Value	$	347,691		$	7,239		$	5,314		$	11,838		$	6,468		$	1,384		$	905		$	380,840			100	%		12	%		42	%
% of Total RMBS & RABS		91	%		2	%		2	%		3	%		2	%		0	%		0	%		100	%
% of Total Fixed Income Portfolio		11	%		0	%		0	%		1	%		0	%		0	%		0	%		12	%
% of Total GAAP Equity		38	%		1	%		1	%		1	%		1	%		0	%		0	%		42	%
Weighted Average Market Price		90.9			61.5			30.6			60.7			43.1			46.1			10.0			83.1
Unrealized/Unrecognized Gain/(Loss)
RMBS Type	AAA			AA				A		BBB			BB				B		CC			Total
Agency	$	7,684		$	-		$	-		$	-		$	-		$	-		$	-		$	7,684
FHA/VA		(1,888	)		-			-			-			-			-			-			(1,888	)
Total Agency		5,796			-			-			-			-			-			-			5,796
Alt-A		(11,907	)		(384	)		-			-			-			(754	)		-			(13,046	)
Alt-A CDO		-			-			-			-			-			-			-			-
Home Equity ABS		-			-			(457	)		-			-			-			-			(457	)
Non-Agency & Other Prime		(15,006	)		(3,057	)		(9,871	)		(395	)		(2,101	)		-			-			(30,428	)
Total RMBS & RABS - Unrealized/Unrecognized	$	(21,117	)	$	(3,441	)	$	(10,327	)	$	(395	)	$	(2,101	)	$	(754	)	$	-		$	(38,135	)
% of Total RMBS & RABS		55	%		9	%		27	%		1	%		6	%		2	%		0	%		100	%

Selective Insurance Group Inc. and Consolidated Subsidiaries
Residential Mortgage Backed (RMBS) and Asset Backed (RABS) Securities
Ratings Migration (1)
March 31, 2009
($ in thousands)
(unaudited)
Original Rating		Current Rating
Rating	Amount	AAA	AA	A	BBB	BB	B	CC
AAA	$                  374,385	347,560	5,619	1,927	11,427	6,468	1,384
AA	4,685	132	1,620	2,028	-	-	-	905
A	1,359	-	-	1,359	-	-	-	-
BBB	$                        411	-	-	-	411	-	-	-
BB	-	-	-	-	-	-	-	-
Total Market Value	380,840	347,692	7,239	5,314	11,838	6,468	1,384	905
Note (1): Migration period is from the purchase date of each security to March 31, 2009

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Commercial Mortgage Backed (CMBS) Securities

March 31, 2009

($ in thousands)

(unaudited)

   

 • Market Value = $171,204; Unrealized Gain/(Loss) = ($33,438)

  • Held to Maturity (HTM) 60%; Available for Sale (AFS) 40%

  • CMBS Portfolio Average Rating = AAA

 • CMBS Securities = 4.7% of the Total Portfolio

Selective Insurance Group Inc. and Consolidated Subsidiaries

Commercial Mortgage Backed Securities (CMBS) - by Vintage Year

March 31, 2009

($ in thousands)

(unaudited)

Market Value

Vintage Yr	AAA			AA				A		BBB			BB			Total			% of Total CMBS			% of Total Fixed Income Portfolio			% of Total GAAP Equity
1996	$	5,022		$	-		$	-		$	-		$	-		$	5,022			3	%		0	%		0	%
1999		6,940			-			-			-			-			6,940			4	%		0	%		1	%
2000		28,317			-			-			-			-			28,317			17	%		1	%		3	%
2001		26,704			-			-			-			-			26,704			16	%		1	%		3	%
2002		15,902			-			-			-			-			15,902			9	%		1	%		2	%
2003		1,830			-			-			-			-			1,830			1	%		0	%		0	%
2004		8,499			-			-			-			-			8,499			5	%		0	%		1	%
2005		951			-			1,029			718			254			2,952			2	%		0	%		0	%
2006		21,208			1,335			-			1,945			-			24,488			14	%		1	%		3	%
2007		45,817			-			-			1,383			3,350			50,550			30	%		2	%		6	%
Total CMBS-Market Value	$	161,190		$	1,335		$	1,029		$	4,046		$	3,604		$	171,204			100	%		6	%		19	%
% of Total CMBS		94	%		1	%		1	%		2	%		2	%		100	%
% of Total Fixed Income Portfolio		5	%		0	%		0	%		1	%		0	%		6	%
% of Total GAAP Equity		18	%		0	%		0	%		0	%		1	%		19	%
Weighted Average Market Price		95.3			38.1			23.0			20.5			19.5			79.5
Unrealized/Unrecognized Gain/(Loss)
Vintage Yr	AAA			AA				A		BBB			BB			Total
1996	$	(234	)	$	-		$	-		$	-		$	-		$	(234	)
1999		38			-			-			-			-			38
2000		137			-			-			-			-			137
2001		815			-			-			-			-			815
2002		782			-			-			-			-			782
2003		(174	)		-			-			-			-			(174	)
2004		(1,000	)		-			-			-			-			(1,000	)
2005		(634	)		-			(3,443	)		(4,081	)		(2,568	)		(10,728	)
2006		(5,216	)		751			-			(7,673	)		-			(12,138	)
2007		(3,247	)		-			-			(1,970	)		(5,720	)		(10,937	)
Total CMBS-Unrealized/Unrecognized	$	(8,733	)	$	751		$	(3,443	)	$	(13,724	)	$	(8,289	)	$	(33,438	)
% of Total CMBS		26	%		-2	%		10	%		41	%		25	%		100	%
Note: Some amounts may not foot due to rounding.

Selective Insurance Group Inc. and Consolidated Subsidiaries

Commercial Mortgage Backed Securities (CMBS) - by Type

March 31, 2009

($ thousands)

(unaudited)

Market Value
CMBS Type	AAA			AA				A		BBB			BB			Total			% of Total CMBS			% of Total Fixed Income Portfolio			% of Total GAAP Equity
Agency MultiFamily	$	90,968		$	-		$	-		$	-		$	-		$	90,968			53	%		3	%		10	%
Conduit		11,252			-			-			-			-			11,252			7	%		1	%		1	%
Fusion(1)		48,565			-			-			851			600			50,016			29	%		2	%		6	%
Lease-Backed		4,148			-			-			-			-			4,148			2	%		0	%		0	%
Re-Securitization		1,231			1,335			1,029			1,945			254			5,794			3	%		0	%		1	%
Single Borrower - Multiple Properties		5,026			-			-			1,250			2,750			9,026			5	%		0	%		1	%
Total CMBS-Market Value	$	161,190		$	1,335		$	1,029		$	4,046		$	3,604		$	171,204			100	%		6	%		19	%
% of Total CMBS		94	%		1	%		1	%		2	%		2	%		100	%
% of Total Fixed Income Portfolio		5	%		0	%		0	%		1	%		0	%		6	%
% of Total GAAP Equity		18	%		0	%		0	%		0	%		1	%		19	%
Weighted Average Market Price		95.3			38.1			23.0			20.5			19.5			79.5
Unrealized/Unrecognized Gain/(Loss)
CMBS Type	AAA			AA				A		BBB			BB			Total
Agency MultiFamily	$	3,383		$	-		$	-		$	-		$	-		$	3,383
Conduit		(89	)		-			-			-			-			(89	)
Fusion(1)		(7,815	)		-			-			(5,301	)		(3,470	)		(16,586	)
Lease-Backed		40			-			-			-			-			40
Re-Securitization		(4,240	)		751			(3,443	)		(7,673	)		(2,569	)		(17,174	)
Single Borrower - Multiple Properties		(12	)		-			-			(750	)		(2,250	)		(3,012	)
Total CMBS-Unrealized/Unrecognized	$	(8,733	)	$	751		$	(3,443	)	$	(13,724	)	$	(8,289	)	$	(33,438	)
% of Total CMBS		26	%		-2	%		10	%		41	%		25	%		100	%

(1) Fusion means a CMBS composed of large and small loans.

Note: Some amounts may not foot due to rounding.

Selective Insurance Group Inc. and Consolidated Subsidiaries
Commercial Mortgage Backed Securities (CMBS)
Ratings Migration (1)
March 31, 2009
($ in thousands)
(unaudited)
Original Rating		Current Rating
Rating	Amount	AAA	AA	A	BBB	BB
AAA	$                     161,088	156,525	1,335	1,029	1,945	254
AA	4,956	4,665	-	-	-	291
A	-	-	-	-	-	-
BBB	2,410	-	-	-	2,101	309
BB	2,750	-	-	-	-	2,750
Total Market Value	$                     171,204	161,190	1,335	1,029	4,046	3,604
Note (1): Migration period is from the purchase date of each security to March 31, 2009

Selective Insurance Group, Inc. and Consolidated Subsidiaries

2007 Vintage Commercial Mortgage Backed (CMBS) Securities

March 31, 2009

($ in thousands)

(unaudited)

•Market Value = $50,550; Unrealized Gain/(Loss) = ($10,937)

•Held to Maturity (HTM) 41%; Available for Sale (AFS) 59%

•2007 Vintage CMBS Portfolio Average Rating = AA+

•2007 Vintage CMBS Securities = 1.6% of the Fixed Income Portfolio

•2007 Vintage CMBS Securities = 1.4% of the Total Portfolio

•2007 Vintage CMBS Securities = 5.5% of GAAP Equity

Selective Insurance Group Inc. and Consolidated Subsidiaries

2007 Vintage Commercial Mortgage Backed Securities (CMBS)

March 31, 2009

($ in thousands)

(unaudited)

Market Value
CMBS Type	AAA			BBB			BB			Total			% of 2007 Vintage CMBS			% of Total Fixed Income Portfolio			% of Total GAAP Equity
Agency MultiFamily	$	40,531		$	-		$	-		$	40,531			80	%		1	%		4	%
Fusion (1)		5,286			133			600			6,020			12	%		0	%		1	%
Single Borrower - Multiple Properties		-			1,250			2,750			4,000			8	%		1	%		1	%
2007 Vintage CMBS-Market Value	$	45,817		$	1,383		$	3,350		$	50,550			100	%		2	%		6	%
% of 2007 Vintage CMBS		91	%		2	%		7	%		100	%
% of Total Fixed Income Portfolio		1	%		0	%		1	%		2	%
% of Total GAAP Equity		5	%		0	%		1	%		6	%
Weighted Average Market Price		93.3			27.7			21.4			72.5
Unrealized/Unrecognized Gain/(Loss)
CMBS Type	AAA			BBB			BB			Total
Agency MultiFamily	$	1,491		$	-		$	-		$	1,491
Fusion (1)		(4,737	)		(1,220	)		(3,470	)		(9,427	)
Single Borrower - Multiple Properties		-			(750	)		(2,250	)		(3,000	)
2007 Vintage CMBS-Unrealized/Unrecognized	$	(3,247	)	$	(1,970	)	$	(5,720	)	$	(10,937	)
% of 2007 Vintage CMBS		30	%		18	%		52	%		100	%

(1) Fusion means a CMBS composed of large and small loans

Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

2005 & 2006 Vintage Commercial Mortgage Backed (CMBS) Securities

March 31, 2009

($ in thousands)

(unaudited)

 

•Market Value = $27,440; Unrealized Gain/(Loss) = ($22,866)

•Held to Maturity (HTM) 54%; Available for Sale (AFS) 46%

•2005 & 2006 Vintage CMBS Portfolio Average Rating = AA+

•2005 & 2006 Vintage CMBS Securities = 0.9% of the Fixed Income Portfolio

•2005 & 2006 Vintage CMBS Securities = 0.8% of the Total Portfolio

•2005 & 2006 Vintage CMBS Securities = 3.0% of GAAP Equity

Selective Insurance Group Inc. and Consolidated Subsidiaries
2005 & 2006 Vintage Commercial Mortgage Backed Securities (CMBS)
March 31, 2009
($ in thousands)
(unaudited)
Market Value
CMBS Type	AAA	AA	A	BBB	BB	Total	% of 2005 & 2006 Vintage CMBS	% of Total Fixed Income Portfolio	% of Total GAAP Equity
Agency MultiFamily	$             12,497	$                    -	$                    -	$                  -	$                 -	$             12,497	46%	1%	1%
Fusion (1)	8,431	-	-	718	-	9,149	33%	0%	1%
Single Borrower - Multiple Properties	1,231	1,335	1,029	1,945	254	5,794	21%	0%	1%
2005 & 2006 Vintage CMBS-Market Value	$             22,159	$             1,335	$             1,029	$           2,663	$              254	$             27,440	100%	1%	3%
% of 2007 Vintage CMBS	81%	5%	3%	10%	1%	100%
% of Total Fixed Income Portfolio	1%	0%	0%	0%	0%	1%
% of Total GAAP Equity	2%	0%	0%	0%	1%	3%
Weighted Average Market Price	80.3	38.1	23.0	18.1	9.0	51.7
Unrealized/Unrecognized Gain/(Loss)
CMBS Type	AAA	AA	A	BBB	BB	Total
Agency MultiFamily	$                   (41)	$                    -	$                    -	$                  -	$                 -	$                   (41)
Fusion (1)	(1,569)	-	-	(4,081)	-	(5,650)
Single Borrower - Multiple Properties	(4,240)	751	(3,443)	(7,673)	(2,568)	(17,174)
2005 & 2006 Vintage CMBS-Unrealized/Unrecognized	$              (5,850)	$                751	$           (3,443)	$        (11,754)	$         (2,568)	$           (22,866)
% of 2005 & 2006 Vintage CMBS	26%	-3%	15%	51%	11%	100%
(1) Fusion means a CMBS composed of large and small loans
Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Alt-A RMBS Securities

March 31, 2009

($ in thousands)

(unaudited)

•Market Value = $40,785; Unrealized Gain/(Loss) = ($13,046)
•Held to Maturity (HTM) 2%; Available for Sale (AFS) 98%
•Alt-A RMBS Portfolio Average Rating = AA
•Alt-A RMBS Securities = 1.1% of the Total Portfolio
	-Fixed-30 Loan-to-Value Ratio = 72.6%
	-Hybrid ARM Loan-to-Value Ratio = 71.9%
	-Fixed-15 Loan-to-Value Ratio = 42.2%

Selective Insurance Group, Inc. and Consolidated Subsidiaries

ALT-A by Vintage Year

March 31, 2009

($ in thousands)

(unaudited)

Market Value

Vintage Yr	ALT-A Fixed-15	Alt-A Fixed-30	Alt-A Hybrid ARM	Alt-A CDO	Total	% of Total Alt-A	% of Total Fixed Income Portfolio	% of Total GAAP Equity
2002	$            5,340	$                   -	$                   -	$                   -	$            5,340	13%	0%	0%
2003	-	1,698	430	-	2,128	5%	0%	0%
2004	-	2,043	1,535	-	3,578	9%	0%	0%
2005	-	2,993	2,396	-	5,389	13%	0%	1%
2006	-	21,509	1,936	905	24,350	60%	1%	3%
Total ALT-A, Market Value	$            5,340	$          28,243	$            6,297	$               905	$          40,785	100%	1%	4%
% of Total ALT-A	13%	69%	16%	2%	100%
% of Total Fixed Income Portfolio	0%	1%	0%	0%	1%
% of Total GAAP Equity	0%	3%	1%	0%	4%
Weighted Average Market Price	99.8	45.3	54.5	10.0	46.2
Unrealized/Unrecognized Gain/(Loss)
Vintage Yr	ALT-A Fixed-15	Alt-A Fixed-30	Alt-A Hybrid ARM	Alt-A CDO	Total
2002	$                  (9)	$                   -	$                   -	$                   -	$                  (9)
2003	-	(338)	(69)	-	(407)
2004	-	(260)	(443)	-	(703)
2005	-	(681)	(2,225)	-	(2,906)
*2006	-	(6,573)	(2,448)	-	(9,021)
Total ALT-A, Unrealized/Unrecognized	$                   (9)	$          (7,852)	$          (5,185)	$                   -	$        (13,046)
% of Total ALT-A	0%	60%	40%	0%	100%

*Alt-A purchases in 3Q06 were halted—no 2007 or later vintage in portfolio.

Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Fixed Income Government & Agency Exposure

March 31, 2009

($ in thousands)

(unaudited)

			Unrecognized/ Unrealized
	Market Value		Gains
US Government
Small Business Adm	$	36,143	$	1,079
US Treasury (1)		39,686		5,479
Other US Govt Guaranteed (2)		96,156		1,640
Total US Government		171,985		8,198
Government Agency Debt
Fannie Mae		40,316		351
Freddie Mac		40,301		301
		80,617		652
Federal Farm Credit Bank		47,523		293
Federal Home Loan Bank		31,122		943
Tenn Valley Authority		13,526		1,177
		92,171		2,413
Total Govt Agency Debt		172,788		3,065
Total US Government Obligations		344,773		11,263
Agency MBS
Fannie Mae		78,201		2,381
Freddie Mac		107,728		2,408
Total Agency MBS(3)		185,929		4,789
Total Government & Agency Exposure	$	530,702	$	16,052

(1) $24.0 Million market value on deposit.

(2) U.S. Government includes corporate securities fully guaranteed by the Federal Deposit Insurance Corporation (FDIC).

(3)Included in the portfolios are $177.7 million market value of Ginnie Mae MBS which benefit from a direct government guarantee.

Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Fixed Maturity Securities
Severity and Duration of Unrealized/Unrecognized Losses
March 31, 2009
($ in millions)
(unaudited)
	Unrealized/ Unrecognized			Fair
Fair Value as a Percentage of Amortized Cost	(Loss) Gain			Value
85% but less than 100% of amortized cost	$	(21.3	)		573.4
75% or more but less than 85% of amortized cost		(16.7	)		72.3
Less than 75% of amortized cost		(93.3	)		90.5
Gross unrealized/unrecognized losses on fixed maturity securities		(131.3	)		736.2
Gross unrealized/unrecognized gains on fixed maturity securities		92.5			2,370.8
Net unrealized/unrecognized losses on fixed maturity securities	$	(38.8	)		3,107.0
	75% or more but less than 85% of Amortized Cost/			Less than 75% of Amortized Cost/
Duration of Unrealized/Unrecognized Loss Position		Carry Value			Carry Value
0 – 3 months	$	(5.0	)		(7.9	)
4 – 6 months		(10.2	)		(24.6	)
7 – 9 months		(1.5	)		(15.5	)
10 – 12 months		-			(7.6	)
Greater than 12 months		-			(37.7	)
Gross unrealized/unrecognized losses	$	(16.7	)		(93.3	)

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Credit Quality of Available for Sale Securities
March 31, 2009
($ in millions)
(unaudited)
	March 31, 2009						December 31, 2008
	Fair Value		Unrealized Gain (Loss)			Credit Quality	Fair Value		Unrealized Gain (Loss)			Credit Quality
AFS Portfolio:
U.S. government obligations1	$	177.7		2.6		AAA		252.2		16.6		AAA
State and municipal obligations		451.0		21.8		AA+		1,758.0		18.6		AA+
Corporate securities		305.5		(9.7	)	A		366.5		(22.9	)	A
Mortgage-backed securities		278.6		(37.6	)	AA+		596.2		(86.1	)	AA+
Asset-backed securities ("ABS")		26.7		(2.8	)	AA		61.4		(15.3	)	AA
Total AFS portfolio	$	1,239.5		(25.7	)	AA+		3,034.3		(89.1	)	AA+
State and Municipal Obligations:
Government obligations	$	251.2		12.0		AA+		574.1		16.2		AA+
Special revenue obligations		199.8		9.8		AA+		1,183.9		2.4		AA+
Total state and municipal obligations	$	451.0		21.8		AA+		1,758.0		18.6		AA+
Corporate Securities:
Financial	$	63.2		(8.2	)	AA-		101.0		(13.1	)	A+
Industrials		41.4		1.0		A		67.7		(2.1	)	A-
Utilities		27.5		(0.3	)	A-		47.6		(0.8	)	A
Consumer discretion		29.8		(1.0	)	A		33.9		(1.5	)	A-
Consumer staples		43.2		1.3		A		42.0		0.5		A
Health care		35.5		1.6		AA		22.7		0.7		A+
Materials		12.3		(2.7	)	A-		13.2		(3.7	)	BBB+
Energy		30.0		1.0		A+		19.1		(0.2	)	A-
Information technology		10.2		(1.8	)	BBB-		10.1		(1.9	)	BBB
Telecommunications services		12.4		(0.6	)	A-		9.2		(0.8	)	A-
Total corporate securities	$	305.5		(9.7	)	A		366.5		(22.9	)	A
Mortgage-backed securities:
Agency CMBS	$	68.5		2.8		AAA		72.9		2.8		AAA
Non-agency CMBS		-		-		-		154.3		(34.8	)	AAA
Agency RMBS		103.3		3.0		AAA		245.5		4.2		AAA
Non-agency RMBS		66.9		(30.3	)	AA+		74.3		(28.4	)	AA+
Alternative-A ("Alt-A") RMBS		39.9		(13.1	)	AA+		49.2		(29.9	)	AA+
Total MBS	$	278.6		(37.6	)	AA+		596.2		(86.1	)	AA+
Asset-backed securities:
ABS	$	26.7		(2.8	)	AA		59.3		(15.1	)	AA+
Alt-A ABS		-		-		-		0.9		-		B
Sub-prime ABS2		-		-		-		1.2		(0.2	)	A
Total ABS	$	26.7		(2.8	)	AA		61.4		(15.3	)	AA
1 U.S. Governemnt includes coporate securities fully guaranteed by the FDIC.
2 Sub-prime exposure is defined as exposure to direct and indirect investments in non-agency residential mortgages with average FICO® scores below 650.

Unrealized gains (losses) represent market value fluctuations from the later of:  (i) the date a security is designated as available for sale; or (ii) the date that an other-than-temporary impairment charge is recognized, through the end of the reporting period.

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Credit Quality of Held to Maturity Securities
March 31, 2009
($ in millions)
(unaudited)
	Fair Value		Carry Value		Unrecognized Holding Gain (Loss)			Unrealized Gain (Loss) in Other Comprehensive Income			Total Unrealized / Unrecognized Gain (Loss)			Credit Quality
HTM Fixed Maturity Portfolio1:
U.S. government obligations	$	167.1		165.6		1.5			7.2			8.7		AAA
State and municipal obligations		1,263.7		1,278.2		(14.5	)		40.6			26.1		AA+
Corporate securities		133.5		133.1		0.4			(7.3	)		(6.9	)	A
Mortgage-backed securities		270.6		276.2		(5.6	)		(28.0	)		(33.6	)	AAA
Asset-backed securities		32.6		33.4		(0.8	)		(6.6	)		(7.4	)	AA
Total HTM portfolio	$	1,867.5		1,886.5		(19.0	)		5.9			(13.1	)	AA+
State and Municipal Obligations:
Government obligations	$	310.6		315.1		(4.5	)		17.0			12.5		AA+
Special revenue obligations		953.1		963.1		(10.0	)		23.6			13.6		AA+
Total state and municipal obligations	$	1,263.7		1,278.2		(14.5	)		40.6			26.1		AA+
Corporate Securities:
Financial	$	41.1		41.8		(0.7	)		(5.0	)		(5.7	)	A
Industrials		32.0		31.7		0.3			(2.5	)		(2.2	)	A-
Utilities		16.9		16.5		0.4			(0.1	)		0.3		A+
Consumer discretion		10.6		10.6		-			0.2			0.2		A
Consumer staples		18.9		18.7		0.2			0.6			0.8		AA-
Health care		3.0		3.0		-			-			-		BBB
Materials		1.9		1.9		-			(0.1	)		(0.1	)	BBB
Energy		9.1		8.9		0.2			(0.4	)		(0.2	)	A
Total corporate securities	$	133.5		133.1		0.4			(7.3	)		(6.9	)	A
Mortgage-backed securities:
Agency CMBS	$	22.5		22.4		0.1			0.5			0.6		AAA
Non-agency CMBS		80.2		85.8		(5.6	)		(31.2	)		(36.8	)	AA+
Agency RMBS		156.7		157.0		(0.3	)		3.1			2.8		AAA
Non-agency RMBS		11.2		11.0		0.2			(0.4	)		(0.2	)	AAA
Total mortgage-backed securities	$	270.6		276.2		(5.6	)		(28.0	)		(33.6	)	AAA
Asset-backed securities:
ABS	$	30.6		30.9		(0.3	)		(6.8	)		(7.1	)	AA+
Alt-A ABS		0.9		1.3		(0.4	)		0.4			-		CC
Sub-prime ABS2		1.1		1.2		(0.1	)		(0.2	)		(0.3	)	A
Total ABS	$	32.6		33.4		(0.8	)		(6.6	)		(7.4	)	AA
1 2008 HTM securities are not presented as they are not material
2 Sub-prime exposure is defined as exposure to direct and indirect investments in non-agency residential mortgages with average FICO® scores below 650.

Unrecognized holding gains (losses) represent market value fluctuations from the later of:  (i) the date a security is designated as held to maturity; or (ii) the date that an other-than-temporary impairment charge is recognized, through the end of the reporting period.  In addition, for securities transferred from an available-for-sale designation, unrealized gain/loss amounts represent market value fluctuations from the later of: (i) the date a security was originally designated as available for sale; or (ii) the date that an other-than-temporary impairment charge was recognized, through the date of transfer, net of amortization subsequent to the date of transfer.