Selective Insurance Group, Inc.

Investor Presentation

November 2008

•Strong market position

–22-state super-regional

–$1.6B NPW

•87% commercial lines

•13% personal lines

•Distribution partner with 940
independent agents

•High-Tech, High-Touch Business Model

•History of financial strength

–“A+” A.M. Best rated for 47 years

•Focus on shareholders

MN

IA

MO

WI

IL

IN

MI

MI

NC

PA

NY

NJ

DE

CT

MA

TN

Selective Profile

Long-Term Shareholder Value Creation

Book Value at 9/30/08 - $18.53

Indicated Annual Dividend - $0.52

High Tech - HighTouch Business Model

Significant Competitive Advantage

High Tech - HighTouch Business Model

*Agents with Selective for 5 years or more.

Significant Competitive Advantage

Disciplined Reserving Practices

•Strong actuarial department

–8 fellows, 7 associates

–Responsible for budgeting and planning

•Detailed actuarial reviews quarterly

•Carried reserves at 57th percentile of
range

Percentages are net of tax, reinsurance and reinstatement premium.

RMS data as of 6/30/08; Equity data as of 9/30/08.

CAT cover: $310M in excess of $40M

RMS Model

Strong Natural Catastrophe Program

13% 5-year CAGR in statutory surplus

High Quality Capital

12% ROE generated by investment portfolio

$3.6B Invested Assets
as of September 30, 2008

Conservative Investment Portfolio

18.9%

26.0%

82.8%

Annual Earnings

($ in Millions)

Dividends paid

Share Repurchase

Capital Returned to Shareholders

116.0%

25.2%

YTD 2008 1.8M shares repurchased for $40.5M

Proactive Capital Management

Cycle Management

Environment conducive to a cycle turn

Industry Conditions Challenging

•Combined ratio pressure

–Pricing continues to decline but at lesser pace than past cycles

–Catastrophe losses up significantly from 2007

–Reserve releases continue

•Challenging growth environment

–Expense ratio pressure

•A weakening economy

•Financial markets turmoil

–Other than temporary impairments

–Surplus shrinking

Positioned for long-term out-performance

Responding to Current Industry Conditions

•Expense management

•Underwriting tools through Knowledge Management

•Improving personal lines

•Generating profitable growth opportunities

•Leveraging agency relationships

Managing Expenses through Cycle

•Workforce reduced

–Restructuring announced in January 2008 with $7 million
annualized pre-tax savings

•Commission structure changes effective July 1

–$7 million annualized pre-tax savings

•Re-domestication of two insurance subsidiaries to Indiana

–$2 million annualized pre-tax savings

•Small business growth through One & Done® system

–23% marginal expense ratio

Knowledge Management

•Information and analytics delivered through Knowledge Management

•Pricing precision through predictive modeling

–Commercial lines models:workers compensation, BOP, CPP and
commercial auto

–MATRIX®for personal lines:auto and homeowners

	Operating Return on Equity
% C/L Book	New (%)	Renewal (%)	Total (%)
Worst 5% (1 Diamond)	(18.6)	(43.3)	(38.7)
Best 95%	11.5	16.9	15.6
Total Commercial	10.6	14.5	13.6

The Power of Predictive Modeling

•Commercial lines business performance

Percent of Total Premium Diamond Distribution*

WC, BOP, CPP, CA

Quality of New Business

2 Year, 7 point combined ratio improvement goal achieved

Note: Booked accident year combined ratios

7.8 points

Workers Compensation Success

Multi-Faceted Personal Lines Improvement Plan

Profitable Growth Opportunities

•Entered MA and TN: $8.5 billion commercial lines premium potential

•One & Done® small business opportunities

–400+ classes and growing

–New business up 11% for 2008 YTD

•289new agents appointed since 2005

Leveraging Excellent Agent Relationships

•Field model with front-line decision-making authority

•Superior claims service

•Access to management team

•Competitive products and programs through Strategic
Business Units

•Technology designed in partnership with agents

•Granular pricing capability through predictive modeling