Exhibit 99.2

	®
Supplemental Investor Package ___________________________________________ Third Quarter 2008
	Investor Contact:   Jennifer DiBerardino   Vice President, Investor Relations   Tel:  973-948-1364   Jennifer.diberardino@selective.com

SELECTIVE INSURANCE GROUP, INC.

2008 Guidance

As of October 30, 2008

Based on nine month actual results and lower expected investment income in the fourth quarter, we are adjusting our earnings guidance range to $1.75 to $1.85 from $2.00 to $2.20.  Our assumptions for full year 2008 are:

· A statutory combined ratio under 100%;

· A GAAP combined ratio of approximately 101%; and

· Diluted weighted average shares of approximately 53 million.

For the fourth quarter, we make the following assumptions:

· After-tax catastrophe losses of $3 million, or $0.06 per share;

· After-tax investment income decrease between 10% to 15%; and

· Diversified Insurance Services revenue decrease of 1% and return on revenue of approximately 10%.

Selective Insurance Group, Inc.
Selected Balance Sheet Data (unaudited)
($ in thousands, except per share amounts)
	September 30,								September 30,							December 31,
	2008								2007							2007
	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	$	1,113,483		1,113,483			(59,249	)	$	1,171,195		1,171,197			3,975		1,299,055		1,299,057			(688	)
Gov't\ Municipal bonds2		1,908,528		1,908,572			(14,311	)		1,767,638		1,767,792			8,371		1,780,275		1,780,417			24,466
Total bonds		3,022,011		3,022,055			(73,560	)		2,938,833		2,938,989			12,346		3,079,330		3,079,474			23,778
Equities		197,201		197,201			39,756			293,681		293,681			134,183		274,705		274,705			114,315
Short-term investments		181,839		181,839			-			228,523		228,523			-		190,167		190,167			-
Trading securities		7,666		7,666			(2,075	)		-		-			-		-		-			-
Other investments		208,947		208,947			16,617			168,755		168,755			31,225		188,827		188,827			30,647
Total invested assets		3,617,664		3,617,708			(19,262	)		3,629,792		3,629,948			177,754		3,733,029		3,733,173			168,740
Total assets		5,041,495								4,986,592							5,001,992
Liabilities:
Reserve for losses		2,262,342								2,105,965							2,182,572
Reserve for loss expenses		380,807								356,632							359,975
Unearned premium reserve		907,846								903,310							841,348
Total liabilities		4,063,731								3,943,968							3,925,949
Stockholders' equity		977,764								1,042,624							1,076,043
Total debt to capitalization ratio		21.9%								24.2%							21.5%
Adjusted total debt to capitalization ratio 3		15.8%								18.0%							15.2%
Book value per share		18.53								19.64							19.81
Book value per share excluding
FAS 115 unrealized gain or loss on bond portfolio		19.44								19.49							19.53
NPW per insurance segment employee		807								790							797
Statutory premiums to surplus ratio		1.6x								1.4x							1.5x
Statutory surplus		932,846								1,071,166							1,034,294

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)
September 2008	THREE MONTHS ENDED SEPTEMBER 30,												NINE MONTHS ENDED SEPTEMBER 30,
($ in thousands, except per share amounts)	2008						2007						2008						2007
				Per diluted share						Per diluted share						Per diluted share						Per diluted share
Consolidated
Revenue	$	417,116					$	455,469					$	1,315,581					$	1,379,617
Operating income		23,668			0.45			35,290			0.63			70,587			1.32			92,575			1.62
Net realized (losses) gains, after tax		(14,676	)		(0.28	)		1,829			0.03			(12,441	)		(0.23	)		17,683			0.30
Net Income		8,992			0.17			37,119			0.66			58,146			1.09			110,258			1.92
Operating return on equity		9.5	%					13.8	%					9.2	%					11.6	%
Insurance Operations
Gross premiums written		466,600						466,367						1,350,412						1,382,546
Net premiums written		400,541						409,523						1,177,610						1,231,631
Net premiums earned		372,510						378,260						1,128,872						1,134,624
Underwriting (loss) profit - before tax		(5,738	)					5,122						(10,441	)					14,693
- after tax		(3,730	)		(0.07	)		3,329			0.06			(6,787	)		(0.13	)		9,550			0.16
GAAP combined ratio		101.5	%					98.6	%					100.9	%					98.7	%
Commercial lines
Net premiums earned		319,651						327,981						972,660						982,958
GAAP combined ratio		99.8	%					97.3	%					99.5	%					97.1	%
Personal lines
Net premiums earned		52,859						50,279						156,212						151,666
GAAP combined ratio		112.0	%					107.6	%					109.8	%					109.1	%
Diversified Insurance Services
Revenue		30,481						29,331						90,344						89,186
Income  - after tax		3,740			0.07			3,075			0.05			9,823			0.18			9,997			0.17
Return on revenue		12.3	%					10.5	%					10.9	%					11.2	%
Investments
Net investment income - before tax		36,134						43,674						112,515						124,179
- after tax		28,543			0.54			33,409			0.59			87,996			1.65			96,354			1.66
Effective tax rate		21.0	%					23.5	%					21.8	%					22.4	%
Annual after-tax yield on investment portfolio														3.2	%					3.6	%
Annual after-tax, after-interest expense yield														2.8	%					3.1	%
Invested assets per $ of stockholders' equity														3.70						3.48
Other expenses (net of other income)
Interest expense - before tax		(5,036	)					(5,832	)					(15,472	)					(18,155	)
Actual interest expense - after tax		(3,274	)					(3,791	)					(10,057	)					(11,801	)
Interest expense addback for dilution - after tax		-						332						-						1,085
Adjusted interest expense - after tax		(3,274	)		(0.06	)		(3,459	)		(0.06	)		(10,057	)		(0.19	)		(10,716	)		(0.18	)
Other - after tax	$	(1,611	)		(0.03	)	$	(732	)		(0.01	)		(10,388	)		(0.19	)	$	(11,525	)		(0.19	)
Diluted weighted avg shares outstanding		52,994						56,434						53,397						58,017

Selective Insurance Group, Inc.
2008 Statutory Results by Line of Business
3rd Qtr 2008 (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	2008	2007	Gain/(Loss)
Personal Lines:
Homeowners	$          19,612	3.4%	$         17,231	10.4%	65.0%	7.7%	32.4%		0.0%	105.1%	99.4%	$         (1,646)
Auto	33,961	4.2%	33,280	2.1%	72.3%	11.0%	29.7%		0.0%	113.0%	110.2%	(4,535)
Other (including flood)	2,658	15.3%	2,349	13.3%	47.6%	(29.0)%	(59.3)%		0.0%	(40.7)%	(27.0)%	3,488
Total	$          56,232	4.4%	$         52,860	5.1%	68.8%	8.1%	26.5%		0.0%	103.4%	101.2%	$         (2,693)
Commercial Lines:
Fire/IM	$          55,152	(1.2)%	$         48,741	0.9%	59.3%	4.5%	34.9%		0.1%	98.8%	91.0%	$         (1,685)
Workers'
compensation	86,653	(2.6)%	78,383	(2.1)%	56.0%	11.5%	22.3%		1.2%	91.0%	99.5%	5,223
General liability	101,922	(3.8)%	97,861	(3.9)%	50.2%	16.5%	31.7%		0.1%	98.5%	100.9%	199
Auto	80,595	(5.4)%	75,411	(5.4)%	61.1%	7.8%	29.1%		0.1%	98.1%	86.3%	(55)
BOP	15,036	6.5%	14,589	9.6%	70.3%	12.2%	33.9%		0.0%	116.4%	113.6%	(2,540)
Bonds	4,965	(7.0)%	4,732	(3.3)%	14.2%	3.0%	57.5%		0.0%	74.7%	76.7%	1,065
Other	2,384	(6.4)%	2,331	8.2%	0.2%	0.7%	45.8%		0.0%	46.7%	48.9%	1,217
Total	$        346,707	(3.1)%	$        322,048	(2.5)%	55.6%	10.9%	29.8%		0.4%	96.7%	95.4%	$          3,425
Grand Total	$        402,939	(2.1)%	$        374,907	(1.5)%	57.4%	10.5%	29.4%		0.3%	97.6%	96.2%	$             732
Note: Some amounts may not foot due to rounding.
		2008	2007
	Losses Paid	$     195,616	$              162,754
	LAE Paid	34,311	33,083
	Total Paid	$     229,927	$              195,837

Selective Insurance Group, Inc.
2008 Statutory Results by Line of Business
September 2008 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	2008	2007	Gain/(Loss)
Personal Lines:
Homeowners	$         52,219	6.4%	$        50,776	10.1%	59.0%	7.9%	35.3%		0.0%	102.2%	110.5%	$           (1,616)
Auto	102,881	4.0%	98,827	(0.8)%	68.7%	13.5%	30.0%		0.0%	112.2%	107.2%	$         (13,235)
Other
(including flood)	7,076	13.9%	6,609	12.0%	50.3%	(18.6)%	(55.9)%		0.0%	(24.2)%	4.6%	8,468
Total	$       162,177	5.1%	$       156,212	3.0%	64.7%	10.3%	28.0%		0.0%	103.0%	104.1%	$           (6,383)
Commercial Lines:
Fire/IM	$       152,381	(2.5)%	$       147,253	4.0%	54.2%	4.6%	37.5%		0.2%	96.5%	92.3%	$            3,255
Workers'
compensation	245,706	(10.0)%	234,351	(3.7)%	57.7%	11.2%	24.5%		1.2%	94.6%	100.0%	9,832
General liability	318,247	(5.0)%	301,062	(1.9)%	50.0%	17.1%	32.5%		0.0%	99.6%	98.6%	(4,447)
Auto	239,277	(6.4)%	232,393	(2.1)%	60.2%	8.0%	29.9%		0.0%	98.1%	86.1%	2,240
BOP	44,721	8.2%	43,114	10.0%	62.1%	12.5%	37.2%		0.0%	111.8%	116.5%	(5,664)
Bonds	14,484	(2.8)%	14,225	(0.4)%	12.9%	3.9%	61.0%		0.0%	77.8%	80.4%	3,003
Other	7,295	3.1%	6,938	15.1%	1.3%	0.3%	44.5%		0.0%	46.1%	39.8%	3,579
Total	$    1,022,110	(5.6)%	$       979,336	(0.9)%	54.5%	11.1%	31.5%		0.3%	97.4%	95.1%	$          11,799
Grand Total	$    1,184,287	(4.3)%	$    1,135,548	(0.4)%	56.0%	11.0%	30.9%		0.3%	98.2%	96.3%	$            5,416
Note: Some amounts may not foot due to rounding.
		2008	2007
	Losses Paid	$    569,035	$            483,316
	LAE Paid	104,782	97,749
	Total Paid	$    673,817	$            581,065

Selective Insurance Group, Inc.
Diversified Insurance Services
( $ in thousands)
Three Months Ended September 30, 2008 (unaudited)
		Revenue			Net Income			Return on Revenue
		2008	2007	% Change	2008	2007	% Change	2008	2007	Pt Change
Flood		15,213	13,023	17%	2,201	1,765	25%	14.5%	13.6%	0.9
Human Resource Administration Outsourcing		12,695	14,048	-10%	752	592	27%	5.9%	4.2%	1.7
Other		2,573	2,260	14%	787	718	10%	30.6%	31.8%	-1.2
Total		30,481	29,331	4%	3,740	3,075	22%	12.3%	10.5%	1.8
Nine Months Ended September 30, 2008 (unaudited)
		Revenue			Net Income			Return on Revenue
		2008	2007	% Change	2008	2007	% Change	2008	2007	Pt Change
Flood		41,323	37,089	11%	5,478	5,513	-1%	13.3%	14.9%	-1.6
Human Resource Administration Outsourcing		41,311	45,771	-10%	1,866	2,421	-23%	4.5%	5.3%	-0.8
Other		7,710	6,326	22%	2,479	2,063	20%	32.2%	32.6%	-0.4
Total		90,344	89,186	1%	9,823	9,997	-2%	10.9%	11.2%	-0.3
Human Resource Administration Outsourcing Statistics (unaudited)
		2008	2007	% Change
New Worksite EE - Selective Agents (Production)		1,212	1,714	-29%
Total New Worksite EE - All Agents (Production)		1,478	2,300	-36%
Total Worksite EE		23,709	25,884	-8%
Annual Gross Billings (000's)	$	963,844	1,003,847	-4%
Annual Gross Billings / Avg Worksite EE	$	39,152	37,843	3%

Note: Certain prior year amounts have been restated to conform with the current year presentation.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

 Quarterly

GAAP Investment Income

($ in thousands)

(unaudited)

		For the three months ended						%			Year to Date						%
		September			September			Increase			September			September			Increase
		2008			2007			(Decrease)			2008			2007			(Decrease)
Investment Income:
	Interest:
	Fixed Maturity Securities	$	36,851			34,872			5.7			109,681			103,718			5.7
	Short-term		976			2,404			(59.4	)		3,703			6,194			(40.2	)
	Other Investments		3,183			6,329			(49.7	)		5,360			12,840			(58.3	)
	Dividends		1,004			1,351			(25.7	)		3,683			5,007			(26.4	)
	Change in Fair Value(1)		(4,817	)		-			N/M			(6,448	)		-			N/M
	Miscellaneous		112			42			166.7			235			159			47.8
			37,309			44,998			(17.1	)		116,214			127,918			(9.1	)
Investment Expense			1,175			1,324			(11.3	)		3,699			3,739			(1.1	)
Net Investment Income Before Tax			36,134			43,674			(17.3	)		112,515			124,179			(9.4	)
Tax			7,591			10,265			(26.0	)		24,519			27,825			(11.9	)
Net Investment Income After Tax		$	28,543			33,409			(14.6	)		87,996			96,354			(8.7	)
Net Investment Income per Share			0.54			0.59			(8.5	)		1.65			1.66			(0.6	)
Effective Tax Rate			21.0	%		23.5	%					21.8	%		22.4	%
Average Yields:
Fixed Maturity Securities
	Pre Tax											4.6	%		4.6	%		-
	After Tax											3.6	%		3.6	%		-
Portfolio
	Pre Tax											4.1	%		4.6	%		(0.5	)
	After Tax											3.2	%		3.6	%		(0.4	)
		For the three months ended									Year to Date
		September			September						September			September
Net Realized Gains (Losses)		2008			2007						2008			2007
	Fixed Maturities		(27,541	)		(988	)					(40,771	)		(1,642	)
	Equity Securities		8,393			4,638						25,061			29,683
	Other		(3,429	)		(836	)					(3,429	)		(836	)
	Total		(22,577	)		2,814						(19,139	)		27,205
	Net of Tax		(14,676	)		1,829						(12,441	)		17,683

(1)	Selective adopted Fas 159, the Fair Value Option for Financial Assets and Financial Liablilities - Including an amendment
	of FASB Statement No. 115,  on January 1, 2008 and elected to apply the fair value option to certain securities that were
	being managed by an outside manager at the time of adoption.

SELECTIVE INSURANCE GROUP, INC.	Unaudited
CONSOLIDATED BALANCE SHEETS	September 30,			December 31,
($ in thousands, except share amounts)	2008			2007
ASSETS
Investments:
Fixed maturity securities, held-to-maturity –at amortized cost
(fair value of:  $1,328 – 2008; $5,927 – 2007)	$	1,284			5,783
Fixed maturity securities, available-for-sale – at fair value
(amortized cost of:  $3,094,331 – 2008; $3,049,913  – 2007)		3,020,727			3,073,547
Equity securities, available-for-sale – at fair value
(cost of:  $157,445 – 2008; $160,390 – 2007)		197,201			274,705
Short-term investments – at cost which approximates fair value		181,839			190,167
Equity securities, trading – at fair value (cost of: $9,740 – 2008)		7,666			-
Other investments		208,947			188,827
Total investments		3,617,664			3,733,029
Cash and cash equivalents		14,178			8,383
Interest and dividends due or accrued		35,539			36,141
Premiums receivable, net of allowance for uncollectible
accounts of:  $4,153 – 2008; $3,905 - 2007		543,060			496,363
Other trade receivables, net of allowance for uncollectible
accounts of:  $206 – 2008; $244 – 2007		24,748			21,875
Reinsurance recoverable on paid losses and loss expenses		5,066			7,429
Reinsurance recoverable on unpaid losses and loss expenses		239,810			227,801
Prepaid reinsurance premiums		99,942			82,182
Current federal income tax		-			4,235
Deferred federal income tax		109,993			22,375
Property and equipment – at cost, net of accumulated
depreciation and amortization of:  $129,091 – 2008; $117,832 – 2007		52,702			58,561
Deferred policy acquisition costs		224,103			226,434
Goodwill		33,637			33,637
Other assets		41,053			43,547
Total assets	$	5,041,495			5,001,992
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for losses	$	2,262,342			2,182,572
Reserve for loss expenses		380,807			359,975
Unearned premiums		907,846			841,348
Senior convertible notes		-			8,740
Notes payable		273,872			286,151
Current federal income tax		3,607			-
Commissions payable		48,842			60,178
Accrued salaries and benefits		84,253			88,079
Other liabilities		102,162			98,906
Total liabilities		4,063,731			3,925,949
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:  95,094,584 – 2008; 94,652,930 – 2007		190,189			189,306
Additional paid-in capital		212,543			192,627
Retained earnings		1,149,380			1,105,946
Accumulated other comprehensive (loss) income		(31,019	)		86,043
Treasury stock – at cost (shares: 42,326,937– 2008; 40,347,894 – 2007)		(543,329	)		(497,879	)
Total stockholders' equity		977,764			1,076,043
Commitments and contingencies
Total liabilities and stockholders' equity	$	5,041,495			5,001,992

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended						Nine Months ended
	September 30,						September 30,
($ in thousands, except per share amounts)	2008			2007			2008			2007
Revenues:
Net premiums written	$	400,541			409,523			1,177,610			1,231,631
Net increase in unearned premiums and prepaid reinsurance premiums		(28,031	)		(31,263	)		(48,738	)		(97,007	)
Net premiums earned		372,510			378,260			1,128,872			1,134,624
Net investment income earned		36,134			43,674			112,515			124,179
Net realized (losses) gains		(22,577	)		2,814			(19,139	)		27,205
Diversified Insurance Services revenue		30,481			29,331			90,344			89,186
Other income		568			1,390			2,989			4,423
Total revenues		417,116			455,469			1,315,581			1,379,617
Expenses:
Losses incurred		215,095			204,304			635,140			616,235
Loss expenses incurred		40,351			42,455			127,136			128,053
Policy acquisition costs		121,271			125,630			374,075			373,249
Dividends to policyholders		1,151			1,440			3,265			3,949
Interest expense		5,036			5,832			15,472			18,155
Diversified Insurance Services expenses		24,794			24,670			75,433			74,089
Other expenses		6,852			4,424			19,807			22,187
Total expenses		414,550			408,755			1,250,328			1,235,917
Income before federal income tax		2,566			46,714			65,253			143,700
Federal income tax (benefit) expense:
Current		10,449			234			34,467			30,571
Deferred		(16,875	)		9,361			(27,360	)		2,871
Total federal income tax (benefit) expense		(6,426	)		9,595			7,107			33,442
Net income	$	8,992			37,119			58,146			110,258
Earnings per share:
Basic net income	$	0.17			0.72			1.11			2.10
Diluted net income	$	0.17			0.66			1.09			1.92
Dividends to stockholders	$	0.13			0.12			0.39			0.36

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
		Nine Months Ended September 30,
($ in thousands, except per share amounts)		2008		2007
Common stock:
Beginning of year	$	189,306		183,124
Dividend reinvestment plan
(shares:  59,704 – 2008; 58,082 – 2007)		119		116
Convertible debentures
(shares:  45,759 – 2008; 849,349 – 2007)		92		1,699
Stock purchase and compensation plans
(shares:  336,191 – 2008; 779,108 – 2007)		672		1,559
End of period		190,189		186,498
Additional paid-in capital:
Beginning of year		192,627		153,246
Dividend reinvestment plan		1,267		1,276
Convertible debentures		645		9,843
Stock purchase and compensation plans		18,004		21,463
End of period		212,543		185,828
Retained earnings:
Beginning of year		1,105,946		986,017
Cumulative-effect adjustment due to adoption of FAS 159,
net of deferred income tax effect of $3,344		6,210
Net income		58,146	58,146	110,258	110,258
Cash dividends to stockholders ($0.39 share – 2008;
$0.36 per share – 2007)		(20,922)		(19,633)
End of period		1,149,380		1,076,642
Accumulated other comprehensive (loss) income:
Beginning of year		86,043		100,601
Cumulative-effect adjustment due to adoption of FAS 159,
net of deferred income tax effect of $(3,334)		(6,210)
Other comprehensive (loss) income, (increase) decrease in:
Net unrealized losses on investment securities, net of deferred
income tax effect of:  $(59,737) – 2008; $(7,376) – 2007		(110,940)	(110,940)	(13,699)	(13,699)
Defined benefit pension plans, net of deferred income tax effect
of:  $48 – 2008; $172 – 2007		88	88	319	319
End of period		(31,019)		87,221
Comprehensive (loss) income			(52,706)		96,878
Treasury stock:
Beginning of year		(497,879)		(345,761)
Acquisition of treasury stock
(shares:  1,979,043 – 2008; 5,879,779  – 2007)		(45,450)		(147,804)
End of period		(543,329)		(493,565)
Total stockholders’ equity	$	977,764		1,042,624

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW	Nine Months ended
	September 30,
($ in thousands)	2008	2007

Operating Activities
Net income	$	58,146	110,258
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		21,329	21,391
Share-based compensation expense		14,094	16,166
Net realized loss (gain)		19,139	(27,205)
Deferred tax		(27,360)	2,871
Unrealized loss on trading securities		6,448	-
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverable
on unpaid losses and loss expenses		88,638	160,852
Increase in unearned premiums, net of prepaid reinsurance and advance premiums		48,609	97,549
Decrease (increase) in net federal income tax recoverable		7,842	(18,235)
Increase in premiums receivable		(46,697)	(93,717)
Increase in other trade receivables		(2,873)	(154)
Decrease (increase) in deferred policy acquisition costs		2,331	(17,056)
Decrease in interest and dividends due or accrued		623	1,250
Decrease in reinsurance recoverable on paid losses and loss expenses		2,363	442
Decrease in accrued salaries and benefits		(6,473)	(13,229)
Decrease in accrued insurance expenses		(15,849)	(377)
Purchase of trading securities		(6,587)	-
Sale of trading securities		17,586	-
Other-net		10,782	2,330
Net adjustments		133,945	132,878
Net cash provided by operating activities		192,091	243,136
Investing Activities
Purchase of fixed maturity securities, available-for-sale		(437,003)	(377,021)
Purchase of equity securities, available-for-sale		(50,551)	(127,392)
Purchase of other investments		(44,380)	(51,197)
Purchase of short-term investments		(1,591,302)	(1,622,327)
Sale of fixed maturity securities, available-for-sale		112,890	102,660
Sale of short-term investments		1,599,629	1,590,804
Redemption and maturities of fixed maturity securities, held-to-maturity		4,530	915
Redemption and maturities of fixed maturity securities, available-for-sale		229,598	264,528
Sale of equity securities, available-for-sale		63,143	126,395
Proceeds from other investments		11,263	31,815
Purchase of property and equipment		(5,535)	(10,427)
Net cash used in by investing activities		(107,718)	(71,247)
Financing Activities
Dividends to stockholders		(19,391)	(17,912)
Acquisition of treasury stock		(45,450)	(147,804)
Principal payment of notes payable		(12,300)	(18,300)
Borrowings under line of credit agreement		-	6,000
Repayment of borrowings under line of credit agreement		-	(6,000)
Net proceeds from stock purchase and compensation plans		5,747	5,784
Excess tax benefits from share-based payment arrangements		1,570	2,762
Principal payments of convertible bonds		(8,754)	-
Net cash used in financing activities		(78,578)	(175,470)
Net increase (decrease) in cash and cash equivalents		5,795	(3,581)
Cash and cash equivalents, beginning of year		8,383	6,443
Cash and cash equivalents, end of period	$	14,178	2,862

Supplemental Disclosures of Cash Flows Information

Cash paid during the period for:
Interest	$	12,518	15,714
Federal income tax		25,050	46,525
Supplemental schedule of non-cash financing activity:
Conversion of convertible debentures		169	11,059

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Balance Sheets
($ in thousands)
	September 30,				September 30,				December 31,
		2008				2007				2007
ASSETS
Bonds		$	3,088,962				2,912,468				3,041,373
Common stocks			226,686				316,208				297,102
Other investments			209,174				168,860				188,827
Short-term investments			105,743				166,698				125,650
Total investments			3,630,565				3,564,234				3,652,952
Cash on hand and in banks			(33,563	)			(27,110	)			(33,209	)
Interest and dividends due and accrued			35,533				32,513				36,057
Premiums receivable			536,602				546,482				491,308
Reinsurance recoverable on paid losses and expenses			2,587				4,559				7,429
Federal income tax recoverable			-				6,654				-
Deferred tax recoverable			89,759				92,677				87,951
EDP equipment			3,656				4,014				4,691
Equities and deposits in pools and associations			9,522				10,740				10,411
Receivable for sold securities			1,262				32,491				167
Other assets			29,201				34,156				32,105
Total assets		$	4,305,124				4,301,410				4,289,862
LIABILITIES
Reserve for losses		$	2,020,278				1,892,407				1,953,960
Reinsurance payable on paid loss and loss expense			1,127				1,381				1,310
Reserve for loss expenses			378,283				353,041				358,126
Unearned premiums			807,904				818,627				759,166
Reserve for commissions payable			48,842				56,199				60,178
Ceded balances payable			11,144				9,649				8,192
Federal income tax payable			15,626				-				14,084
Premium and other taxes payable			20,469				22,214				24,982
Reserve for dividends to policyholders			4,884				4,042				5,651
Reserves for unauthorized/overdue reinsurance			1,258				1,570				1,258
Payable for securities			1,378				11,332				-
Funds withheld on account of others			5,839				8,211				5,070
Accrued salaries and benefits			41,726				38,639				48,582
Other liabilities			13,520				12,932				15,009
Total liabilities			3,372,278				3,230,244				3,255,568
POLICYHOLDERS' SURPLUS
Capital			28,325				28,325				28,325
Paid in surplus			235,792				235,792				235,792
Unassigned surplus			668,729				807,049				770,177
Total policyholders' surplus			932,846				1,071,166				1,034,294
Total liabilities and policyholders' surplus		$	4,305,124				4,301,410				4,289,862

Selective Insurance Group, Inc.

 Combined Insurance Company Subsidiaries

Unaudited Statutory Statements Of Income

($ in thousands)

	Three Months Ended										Nine Months Ended
	September										September
UNDERWRITING	2008					2007					2008					2007
Net premiums written	$	402,939					411,747					1,184,287					1,237,419
Net premiums earned		374,908					380,467					1,135,548					1,140,391
Net losses paid		195,616					162,754					569,035					483,316
Change in reserve for losses		19,686					41,772					66,318					133,256
Net losses incurred		215,302		57.4	%		204,526		53.8	%		635,353		56.0	%		616,572		54.1	%
Net loss expenses paid		34,311					33,083					104,782					97,749
Change in reserve for loss expenses		5,111					9,120					20,158					28,180
Net loss expenses incurred		39,422		10.5	%		42,203		11.1	%		124,940		11.0	%		125,929		11.0	%
Net underwriting expenses incurred		117,920		29.3	%		128,330		31.1	%		367,173		31.0	%		384,151		31.1	%
Total deductions		372,644					375,059					1,127,467					1,126,652
Statutory gain		2,264					5,408					8,082					13,739
Net loss from premium balances charged off		(950	)				(489	)				(2,436	)				(1,951	)
Finance charges and other income		569					1,393					3,035					4,396
Total other income		(381	)	0.1	%		904		-0.2	%		599		-0.1	%		2,445		-0.2	%
Policyholders' dividends incurred		(1,151	)	0.3	%		(1,441	)	0.4	%		(3,265	)	0.3	%		(3,949	)	0.3	%
Total underwriting gain		732		97.6	%		4,871		96.2	%		5,416		98.2	%		12,235		96.3	%
INVESTMENT
Net investment income earned		45,210					43,341					123,450					118,090
Net realized (loss) gain		(20,107	)				2,820					(13,960	)				27,211
Total income before income tax		25,835					51,032					114,906					157,536
Federal income tax expense		14,946					3,752					44,894					39,829
Net income	$	10,889					47,280					70,012					117,707
Policyholders' Surplus
Surplus, beginning of period	$	999,676					1,059,939					1,034,294					1,030,078
Net income		10,889					47,280					70,012					117,707
Change in deferred tax		12,106					(7,867	)				19,359					2,716
Change in unrealized losses		(33,394	)				(6,545	)				(62,396	)				(6,855	)
Dividends to stockholders		(24,502	)				(26,003	)				(77,045	)				(76,012	)
Change in non-admitted assets		(31,761	)				4,334					(51,101	)				(3,352	)
Surplus adjustments		(168	)				28					(277	)				6,884
Net change in surplus for period		(66,830	)				11,227					(101,448	)				41,088
Surplus, end of period	$	932,846					1,071,166					932,846					1,071,166
Statutory underwriting gain:	$	732					4,871					5,416					12,235
Adjustments under GAAP:
Deferred policy acquisition costs		(1,542	)				4,827					(2,331	)				17,056
Flood income reclassification		(3,392	)				(2,721	)				(8,447	)				(8,502	)
Other, net		(1,536	)				(1,855	)				(5,079	)				(6,096	)
GAAP underwriting (loss) gain	$	(5,738	)				5,122					(10,441	)				14,693

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
Credit Quality of Available for Sale Securities
September 30, 2008
($ in millions)
(unaudited)
		September 30, 2008			December 31, 2007
		Fair Value	Unrealized Gain (Loss)	Credit Quality	Fair Value	Unrealized Gain (Loss)	Credit Quality
AFS Portfolio:
U.S. government obligations	$	164.3	6.3	AAA	179.7	6.9	AAA
State and municipal obligations		1,742.9	(20.7)	AA+	1,611.1	17.6	AA+
Corporate securities		378.4	(13.4)	A	487.1	7.9	A
MBS		671.5	(40.6)	AA+	697.9	(7.3)	AA+
ABS		63.6	(5.2)	AA	97.7	(1.5)	AA+
Total AFS portfolio	$	3,020.7	(73.6)	AA+	3,073.5	23.6	AA+
State and Municipal Obligations:
Government obligations	$	580.4	(4.3)	AA+	521.5	7.3	AA+
Special revenue obligations		1,162.5	(16.4)	AA+	1,089.6	10.3	AA+
Total state and municipal obligations	$	1,742.9	(20.7)	AA+	1,611.1	17.6	AA+
Corporate Securities:
Financial	$	108.3	(7.4)	A+	183.6	1.6	A+
Industrials		75.7	(0.9)	A-	86.0	2.0	A-
Utilities		47.8	(0.7)	A	49.9	1.5	A
Consumer discretion		39.9	(0.4)	A-	46.7	1.4	A-
Consumer staples		34.2	(1.4)	A	36.8	0.1	A+
Health care		22.0	-	A+	26.7	0.7	A+
Materials		15.6	(1.3)	A-	17.1	0.1	A-
Energy		14.0	(0.3)	A-	18.1	0.3	A
Information technology		11.5	(0.5)	BBB	12.3	0.3	BBB
Telecommunications services		9.4	(0.5)	A-	9.9	(0.1)	A-
Total corporate securities	$	378.4	(13.4)	A	487.1	7.9	A
MBS:
CMBS	$	281.0	(15.3)	AA+	284.4	(4.6)	AA+
Agency RMBS		239.5	1.1	AAA	221.8	2.2	AAA
Non-agency RMBS		94.6	(12.8)	AA+	119.4	(1.9)	AA+
Alt-A RMBS		56.4	(13.6)	AAA	72.3	(3.0)	AAA
Total MBS	$	671.5	(40.6)	AA+	697.9	(7.3)	AA+
ABS:
ABS	$	51.3	(3.3)	AA-	76.5	(1.3)	AA+
Alt-A ABS		10.9	(1.8)	AAA	19.2	(0.2)	AAA
Sub-prime ABS1		1.4	(0.1)	AA	2.0	-	AAA
Total ABS	$	63.6	(5.2)	AA	97.7	(1.5)	AA+

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

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Municipal Fixed Income Portfolio as of September 30, 2008
($ in millions)
(unaudited)
	Average	Market	% of Total	Unrealized
	Credit Rating	Value	Muni Portfolio	Gain/(Loss)
Uninsured Securities	AA+	928	53%	(13)
Securities with Insurance Enhanced1	AA+	816	47%	(8)
Without Insurance Enhancement	AA-
Total		$     1,744	100%	$          (21)

1 Includes $14.4 million of unrated municipal fixed income securities which we consider 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

September 30, 2008

($ in millions)

(unaudited)

					Underlying		Total Municipal		Total Municipal
					Rating		Fixed		Fixed
			Insurance		of  Insurance		Income Portfolio		Income Portfolio
	Uninsured		Enhanced		Enhanced		(with Insurance		(without Insurance
	Securities		Securities1		Securities1		Enhancement)		Enhancement)
	(1)		(2)		(3)		(1) + (2)		(1) + (3)
S&P or equivalent ratings	Market Value	% of Total	Market Value	% of Total	Market Value	% of Total	Market Value	% of Total	Market Value	% of Total
AAA	$      454	49%	$      293	36%	$       60	7%	$       747	43%	$       514	29%
AA+	162	17%	46	6%	101	12%	208	12%	262	15%
AA	183	20%	328	40%	156	19%	511	29%	339	19%
AA-	69	7%	94	11%	234	29%	162	9%	303	17%
A+	23	2%	32	4%	96	12%	55	3%	118	7%
A	8	1%	11	1%	92	11%	19	1%	99	6%
A-	17	2%	9	1%	45	6%	26	1%	63	4%
BBB+	4	0%	1	0%	14	2%	5	0%	18	1%
BBB	7	1%	-	0%	-	0%	7	0%	7	0%
BBB-	-	0%	3	0%	19	2%	3	0%	19	1%
BB+	2	0%	-	0%	-	0%	2	0%	2	0%
Total	$      928	100%	$      816	100%	$      816	100%	$     1,744	100%	$     1,744	100%
Average Rating:		AA+		AA+		AA-		AA+		AA
Unrealized Gain/(Loss):	(13)		(8)				(21)

1 Includes $14.4 million of unrated municipal fixed income securities which we consider 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
Muni Bonds with Credit Enhancement
September 30, 2008
($ in thousands)
(unaudited)
Credit  Enhancement	Underlying Composite Rating	Market Value	Book Value	Unrealized
AMBAC	AAA	16,741	16,681	60
(Ratings:	AA+	12,036	11,937	99
Moody's = Aa3	AA	28,099	28,548	(448)
S&P = AA	AA-	13,805	14,114	(309)
Fitch = WD)	A+	5,879	6,080	(201)
	A	28,100	29,131	(1,031)
	A-	9,023	9,120	(96)
	BBB+	3,241	3,258	(17)
	N/R	5,655	5,720	(65)
AMBAC Total		$        122,580	$        124,587	$          (2,008)
BHAC (Ratings:  Moody's = Aaa S&P = AAA Fitch = NR)	A	3,999	4,171	(172)
BHAC Total		$           3,999	$           4,171	$             (172)
FGIC	AAA	12,177	11,937	240
(Ratings:	AA+	17,351	17,236	115
Moody's = B1	AA	22,918	22,900	18
S&P = BB	AA-	59,108	60,577	(1,468)
Fitch = CCC)	A+	24,436	25,707	(1,271)
	A	8,723	8,759	(36)
	A-	8,630	8,723	(92)
	BBB-	2,812	2,882	(70)
	N/R	512	517	(6)
FGIC Total		$       156,668	$        159,238	$          (2,569)
FSA	AAA	25,062	25,174	(112)
(Ratings:	AA+	54,663	54,923	(259)
Moody's =Aaa	AA	39,861	40,189	(328)
S&P = AAA	AA-	69,132	68,666	466
Fitch = AAA)	A+	23,762	23,713	49
	A	22,249	22,356	(107)
	A-	8,961	8,961	(1)
FSA Total		$       243,690	$        243,982	$             (292)
MBIA	AAA	5,935	5,773	163
(Ratings:	AA+	16,592	16,979	(387)
Moody's = A2	AA	64,905	65,086	(181)
S&P = AA	AA-	92,142	92,419	(277)
Fitch = WD)	A+	38,027	38,098	(71)
	A	28,555	29,146	(591)
	A-	18,834	19,285	(451)
	BBB-	1,982	2,130	(149)
	BBB+	10,632	10,695	(63)
	N/R	6,997	7,201	(204)
MBIA Total		$        284,601	$        286,811	$          (2,210)
RADIAN (Ratings: Moody's = A3 S&P = BBB+ Fitch = WD)	N/R	1,266	1,265	1
RADIAN Total		$           1,266	$           1,265	$                  1
XLCA (now Syncora) (Ratings: Moody's = B2 S&P = BBB- Fitch = CCC)	A+	3,456	3,877	(422)
XLCA Total		$           3,456	$            3,877	$             (422)
Grand Total		$        816,259	$        823,931	$          (7,672)
Muni's with Insurance as a % of total Munis		47%
Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Structured Securities

September 30, 2008

($ in thousands)

(unaudited)

   

•Market Value = $735,098 ; Unrealized Gain/(Loss) = ($45,803)

•Structured Security Portfolio S&P Average Rating =   AA+

•Structured Securities = 20.3% of the Total Portfolio

Selective Insurance Group Inc. and Consolidated Subsidiaries
Residential Mortgage Backed Securities (RMBS) and Residential ABS (RABS)- by Vintage Year
September 30, 2008
($ in thousands)
(unaudited)
Market Value
Vintage Yr	AAA	AA	A	BBB	B	Total	% of Total RMBS & RABS	% of Total Fixed Income Portfolio	% of Total GAAP Equity
1983	$                   20	$                     -	$                     -	$                     -	$                     -	$                      20	0%	0%	0%
2002	69,534	2,493	-	-	-	72,026	18%	2%	7%
2003	63,723	-	2,097	-	-	65,820	16%	2%	7%
2004	39,534	-	-	-	-	39,534	10%	1%	4%
2005	62,681	-	-	-	-	62,681	16%	2%	6%
2006	120,466	-	-	-	2,684	123,150	30%	4%	13%
2007	11,517	2,734	6,922	730	-	21,902	5%	1%	2%
2008	18,827	-	-	-	-	18,827	5%	1%	2%
Total RMBS & RABS-Market Value	$         386,302	$              5,226	$              9,019	$                 730	$              2,684	$           403,961	100%	13%	41%
% of Total RMBS & RABS	96%	1%	2%	0%	1%	100%
% of Total Fixed Income Portfolio	13%	0%	0%	0%	0%	13%
% of Total GAAP Equity	40%	1%	1%	0%	0%	41%
Weighted Average Market Price	94.5	98.1	66.5	100.0	29.1	93.7
Unrealized Gain/(Loss)
Vintage Yr	AAA	AA	A	BBB	B	Total
1983	$                      1	$                     -	$                     -	$                     -	$                     -	$                        1
2002	721	(101)	-	-	-	620
2003	(370)	-	(480)	-	-	(849)
2004	(1,761)	-	-	-	-	(1,761)
2005	(6,456)	-	-	-	-	(6,456)
2006	(14,788)	-	-	-	-	(14,788)
2007	141	-	(4,057)	-	-	(3,916)
2008	(63)	-	-	-	-	(63)
Total RMBS & RABS - Unrealized	$          (22,575)	$               (101)	$            (4,537)	$                     -		$            (27,213)
% of Total RMBS & RABS	83%	0%	17%	0%	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
September 30, 2008
($ in thousands)
(unaudited)
Market Value
RMBS Type	AAA	AA	A	BBB	B	Total	% of Total RMBS & RABS	% of Total Fixed ncome Portfolio	% of Total GAAP Equity
Agency	$         226,564	$                     -	$                     -	$                     -	$                     -	$           226,564	56%	7%	23%
FHA/VA	12,972	-	-	-	-	12,972	3%	0%	1%
Total Agency	239,537	-	-	-	-	239,537	59%	8%	24%
Alt-A	64,652	-	-	-	-	64,652	16%	2%	7%
Alt-A CDO	-	-	-	-	2,684	2,684	1%	0%	0%
Home Equity ABS	-	2,493	-	-	-	2,493	1%	0%	0%
Non-Agency & Other Prime	82,113	2,734	9,019	730	-	94,596	23%	3%	10%
Total RMBS & RABS-Market Value	$         386,302	$              5,226	$              9,019	$                 730	$              2,684	$           403,961	100%	13%	41%
% of Total RMBS & RABS	96%	1%	2%	0%	1%	100%
% of Total Fixed Income Portfolio	13%	0%	0%	0%	0%	13%
% of Total GAAP Equity	40%	1%	1%	0%	0%	41%
Weighted Average Market Price	94.5	98.1	66.5	27.2	29.1	93.7
Unrealized Gain/(Loss)
RMBS Type	AAA	AA	A	BBB	B	Total
Agency	$              1,728	$                     -	$                     -	$                     -	$                     -	$                1,728
FHA/VA	(604)	-	-	-	-	(604)
Total Agency	1,124	-	-	-	-	1,124
Alt-A	(15,379)	-	-	-	-	(15,379)
Alt-A CDO	-	-	-	-	-	-
Home Equity ABS	-	(101)	-	-	-	(101)
Non-Agency & Other Prime	(8,320)	-	(4,537)	-	-	(12,857)
Total RMBS & RABS - Unrealized	$          (22,575)	$               (101)	$            (4,537)	$                     -	$                     -	$            (27,213)
% of Total RMBS & RABS	83%	0%	17%	0%	0%	100%
Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

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

September 30, 2008

($ in thousands)

(unaudited)

 

•Market Value = $403,961; Unrealized Gain/(Loss) = ($27,213)

•RMBS & RABS Portfolio S&P Average Rating = AAA

•RMBS & RABS Securities = 11.2% of the Total Portfolio

Selective Insurance Group Inc. and Consolidated Subsidiaries
Commercial Mortgage Backed Securities (CMBS)- by Vintage Year
September 30, 2008
($ 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	$               5,066	$                  -	$                -	$                 -	$                -	$              5,066	2%	0%	1%
1999	30,111	-	-	-	-	30,111	11%	1%	3%
2000	33,932	-	-	-	-	33,932	12%	1%	3%
2001	47,891	-	-	-	-	47,891	17%	2%	5%
2002	46,102	-	-	-	-	46,102	16%	2%	5%
2003	1,905	-	-	-	-	1,905	1%	0%	0%
2004	9,110	4,822	-	-	-	13,932	5%	0%	1%
2005	2,510	4,644	3,828	2,959	1,576	15,517	6%	1%	2%
2006	20,836	8,276	2,699	-	-	31,811	11%	1%	3%
2007	37,736	5,061	1,670	5,795	4,450	54,712	19%	2%	6%
Total CMBS-Market Value	$           235,199	$          22,803	$          8,197	$           8,754	$          6,026	$          280,980	100%	9%	29%
% of Total CMBS	84%	8%	3%	3%	2%	100%
% of Total Fixed Income Portfolio	8%	1%	0%	0%	0%	9%
% of Total GAAP Equity	24%	2%	1%	1%	1%	29%
Weighted Average Market Price	97.1	90.0	82.0	80.6	77.0	94.8
Unrealized Gain/(Loss)
Vintage Yr	AAA	AA	A	BBB	BB	Total
1996	$                (191)	$                  -	$                -	$                 -	$                -	$                (191)
1999	169	-	-	-	-	169
2000	276	-	-	-	-	276
2001	609	-	-	-	-	609
2002	(742)	-	-	-	-	(742)
2003	(100)	-	-	-	-	(100)
2004	(389)	(178)	-	-	-	(567)
2005	(279)	(201)	(1,173)	(1,839)	(1,249)	(4,741)
2006	(5,665)	(401)	(301)	-	-	(6,367)
2007	(759)	(1,743)	(330)	(270)	(550)	(3,652)
Total CMBS-Unrealized	$             (7,070)	$           (2,523)	$         (1,803)	$         (2,110)	$        (1,799)	$           (15,305)
% of Total CMBS	46%	16%	12%	14%	12%	100%

Note: Some amounts may not foot due to rounding.

Selective Insurance Group Inc. and Consolidated Subsidiaries
Commercial Mortgage Backed Securities (CMBS)- by Type
September 30, 2008
($ 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	$             72,581	$                  -	$                -	$                 -	$                -	$            72,581	26%	2%	7%
Cell Tower	-	18,653	4,369	-	-	23,023	8%	1%	2%
Conduit	26,891	-	-	-	-	26,891	10%	1%	3%
Fusion (1)	112,132	2,472	-	7,025	-	121,629	43%	4%	12%
Lease-Backed	4,637	-	-	-	-	4,637	2%	0%	0%
Re-Securitization	11,343	1,677	3,828	-	1,576	18,424	7%	1%	2%
Single Borrower - Multiple Properties	5,074	-	-	1,730	4,450	11,254	4%	0%	1%
Timberland	2,541	-	-	-	-	2,541	1%	0%	0%
Total CMBS-Market Value	$           235,199	$          22,803	$          8,197	$           8,754	$          6,026	$          280,980	100%	9%	29%
% of Total CMBS	84%	8%	3%	3%	2%	100%
% of Total Fixed Income Portfolio	8%	1%	0%	0%	0%	9%
% of Total GAAP Equity	24%	2%	1%	1%	1%	29%
Weighted Average Market Price	97.1	90.0	82.0	80.6	77.0	94.8
Unrealized Gain/(Loss)
CMBS Type	AAA	AA	A	BBB	BB	Total
Agency MultiFamily	$               1,336	$                  -	$                -	$                 -	$                -	$              1,336
Cell Tower	-	(1,191)	(631)	-	-	(1,822)
Conduit	(424)	-	-	-	-	(424)
Fusion (1)	(2,612)	(1,331)	-	(1,839)	-	(5,783)
Lease-Backed	14	-	-	-	-	14
Re-Securitization	(4,948)	-	(1,173)	-	(1,249)	(7,369)
Single Borrower - Multiple Properties	22	-	-	(270)	(550)	(798)
Timberland	(459)	-	-	-	-	(459)
Total CMBS-Unrealized	$             (7,070)	$           (2,523)	$         (1,803)	$         (2,110)	$        (1,799)	$           (15,305)
% of Total CMBS	46%	16%	12%	14%	12%	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 (CMBS) Securities

September 30, 2008

($ in thousands)

(unaudited)

•Market Value = $280,980; Unrealized Gain/(Loss) = ($15,305)

•CMBS Portfolio S&P Average Rating = AA+

•CMBS Securities = 7.8% of the Total Portfolio

Selective Insurance Group Inc. and Consolidated Subsidiaries
2007 Vintage Commercial Mortgage Backed Securities (CMBS)
September 30, 2008
($ in thousands)
(unaudited)
Market Value
CMBS Type	AAA	AA	A	BBB	BB	Total	% of 2007 Vintage CMBS	% of Total Fixed Income Portfolio	% of Total GAAP Equity
Agency MultiFamily	$             28,781	$                    -	$                  -	$                  -	$                 -	$             28,781	53%	1%	3%
Cell Tower	-	2,588	1,670	-	-	4,259	8%	0%	0%
Fusion (1)	8,954	2,472	-	4,066	-	15,492	28%	1%	2%
Single Borrower - Multiple Properties	-	-	-	1,730	4,450	6,180	11%	0%	1%
2007 Vintage CMBS-Market Value	$             37,736	$             5,061	$           1,670	$           5,795	$          4,450	$             54,712	100%	2%	6%
% of 2007 Vintage CMBS	69%	9%	3%	11%	8%	100%
% of Total Fixed Income Portfolio	1%	0%	0%	0%	0%	2%
% of Total GAAP Equity	4%	1%	0%	1%	0%	6%
Weighted Average Market Price	98.0	74.4	83.5	95.5	89.0	93.7
Unrealized Gain/(Loss)
CMBS Type	AAA	AA	A	BBB	BB	Total
Agency MultiFamily	$                  311	$                    -	$                  -	$                  -	$                 -	$                 311
Cell Tower	-	(412)	(330)	-	-	(741)
Fusion (1)	(1,070)	(1,331)	-	-	-	(2,401)
Single Borrower - Multiple Properties	-	-	-	(270)	(550)	(820)
2007 Vintage CMBS-Unrealized	$                 (759)	$           (1,743)	$             (330)	$             (270)	$            (550)	$             (3,652)
% of 2007 Vintage CMBS	21%	48%	9%	7%	15%	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

2007 Vintage Commercial Mortgage Backed (CMBS) Securities

September 30, 2008

($ in thousands)

(unaudited)

   

•Market Value = $54,712; Unrealized Gain/(Loss) = ($3,652)

•2007 Vintage CMBS Portfolio S&P Average Rating = AA

•2007 Vintage CMBS Securities = 1.8% of the Fixed Income Portfolio

•2007 Vintage CMBS Securities = 1.5% of the Total Portfolio

•2007 Vintage CMBS Securities = 5.6% of GAAP Equity

Selective Insurance Group, Inc. and Consolidated Subsidiaries
ALT-A by Vintage Year
AAA Rated, except for Alt-A CDO which is NR/A-/CCC by Moody's/S&P/Fitch
September 30, 2008
($ 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	$                  5,941	$                         -	$                         -		$                  5,941	9%	0%	1%
2003	-	1,853	556		2,409	4%	0%	0%
2004	-	2,483	1,838		4,321	6%	0%	0%
2005	-	3,996	3,862		7,857	12%	0%	1%
2006	-	41,069	3,054	2,684	46,807	70%	2%	5%
Total ALT-A, Market Value	$                  5,941	$                49,401	$                  9,310	$                  2,684	$                67,336	100%	2%	7%
% of Total ALT-A	9%	73%	14%	4%	100%
% of Total Fixed Income Portfolio	0%	2%	0%	0%	2%
% of Total GAAP Equity	1%	5%	1%	0%	7%
Weighted Average Market Price	99.8	79.4	78.7	100.0	81.4
Unrealized Gain/(Loss)
Vintage Yr	ALT-A Fixed-15	Alt-A Fixed-30	Alt-A Hybrid ARM	Alt-A CDO	Total
2002	$                      (11)	$                         -	$                        -	$                         -	$                      (11)
2003	-	(267)	5	-	(263)
2004	-	(249)	(187)	-	(436)
2005	-	(164)	(1,013)	-	(1,177)
*2006	-	(12,162)	(1,330)	-	(13,492)
Total ALT-A, Unrealized	$                      (11)	$              (12,843)	$                (2,525)	$                         -	$              (15,379)
% of Total ALT-A	0%	84%	16%	0%	100%
*We halted Alt-A purchases in 3Q06—we have no 2007 or later vintage
Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Alt-A RMBS Securities Securities

September 30, 2008

($ in thousands)

(unaudited)

   

•Market Value = $67,336; Unrealized Gain/(Loss) = ($15,379)

•Alt-A RMBS Portfolio S&P Average rating = AAA

•Alt-A RMBS Securities = 1.9% of the Total Portfolio

          –Fixed-30 Loan-to-Value Ratio           =  72.8%

          –Hybrid ARM Loan-to-Value Ratio     =  72.4%

          –Fixed-15 Loan-to-Value Ratio           =  43.8%

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Asset Backed Securities with Insurance
September 30, 2008
($ in thousands)
(unaudited)
				Market		Unrealized	% Unreal
Credit Enhancement		Security Name	Rating	Value	% Market	Gain/Loss	G/L
AMBAC	*	RASC 2002-KS4 AI6	Aa3/AA	$                  1,365	9.0%	$          (109)	11.5%
	*	RFMS2 2002-HI1 A7	Aa3/AA	1,128	7.4%	7	-0.7%
		UHAUL 2007-BT1 BT	Aa3/AA	5,120	33.6%	(681)	72.0%
AMBAC Total				7,613	50.0%	(783)	82.8%
CIFG	**	SHCDO 2006-1A A1	NR/B	2,684	17.6%	-	0.0%
CIFG Total				2,684	17.6%	-	0.0%
FGIC		USXL 2006-1A A	Baa3/BBB-	2,033	13.3%	(158)	16.7%
FGIC Total				2,033	13.3%	(158)	16.7%
MBIA	*	AERLS 2007-1A G3	A2/AA	2,908	19.1%	(5)	0.5%
MBIA Total				2,908	19.1%	(5)	0.5%
Grand Total				$                15,238	100.0%	$          (946)	100.0%
% of Total ABS				24%
% of Total Fixed Income Portfolio				1%
% of Total GAAP Equity				2%
* Securities written down in 2nd Quarter 2008
** Securities written down in 2nd & 3rd Quarters 2008
Ratings:
AMBAC: (Moody's = Aa3; S&P = AA; Fitch = WD)
CIFG: (Moody's = Ba2; S&P = B; Fitch = CCC)
FGIC: (Moody's = B1; S&P = BB; Fitch = CCC)
MBIA: (Moody's = A2; S&P = AA; Fitch = WD)
Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Fixed Income Government & Agency Exposure

September 30, 2008

($ in thousands)

(unaudited)

					Unrealized
	Book Value		Market Value		Gains
US Government
Small Business Adm	$	13,334	$	13,434	$	100
US Treasury (1)		74,762		79,197		4,435
Total US Government		88,096		92,631		4,535
Government Agency Debt
Fannie Mae		10,000		10,169		169
Freddie Mac		10,000		10,206		206
		20,000		20,375		375
Federal Farm Credit Bank		17,236		17,287		51
Federal Home Loan Bank		19,979		20,141		162
Tenn Valley Authority		12,665		13,842		1,177
		49,880		51,270		1,390
Total Govt Agency Debt		69,880		71,645		1,765
Total US Government Obligations		157,976		164,276		6,300
Ginnie Mae, Fannie Mae and Freddie Mac Agency MBS
Ginnie Mae		127,279		128,014		435
Fannie Mae		69,951		70,791		840
Freddie Mac		98,551		100,340		1,789
Total Ginnie Mae, Fannie Mae and Freddie Mac Agency MBS	$	295,781		299,145		3,064

(1) $24 Million on Deposit.

Note: Some amounts may not foot due to rounding.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Available-for-Sale Fixed Maturity Securities

Severity and Duration of Unrealized Losses

September 30, 2008

($ in millions)

(unaudited)

		Unrealized	Fair
Fair Value as a Percentage of Amortized Cost		(Loss) Gain	Value
85% but less than 100% of amortized cost	$	(55.1)	1,506.9
75% or more but less than 85% of amortized cost		(17.5)	70.5
Less than 75% of amortized cost		(25.5)	46.8
Gross unrealized losses on fixed maturity securities		(98.1)	1,624.2
Gross unrealized gains on fixed maturity securities		24.5	1,396.5
Net unrealized losses on fixed maturity securities	$	(73.6)	3,020.7
Duration of Unrealized Loss Position		75% or more but less than 85% of Amortized Cost	Less than 75% of Amortized Cost
0 – 3 months	$	(8.7)	(2.8)
4 – 6 months		(4.8)	(1.3)
7 – 9 months		(4.0)	(15.0)
10 – 12 months		-	(6.4)
Gross unrealized losses	$	(17.5)	(25.5)