powerpoint

Fox-Pitt Kelton Small & MidCap

Bank & Insurance Conference

Selective Insurance Group, Inc.

June 17, 2009

Certain statements in this report, including information incorporated by reference, are “forward-
looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995
(“PSLRA”). The PSLRA provides a safe harbor under the Securities Act of 1933 and the Securities
Exchange Act of 1934 for forward-looking statements. These statements relate to our intentions,
beliefs, projections, estimations or forecasts of future events or our future financial performance
and involve known and unknown risks, uncertainties and other factors that may cause our or our
industry's actual results, levels of activity, or performance to be materially different from those
expressed or implied by the forward-looking statements. In some cases, you can identify forward-
looking statements by use of words such as "may," "will," "could," "would," "should," "expect,"
"plan," "anticipate," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro
forma," "seek," "likely" or "continue" or other comparable terminology. These statements are only
predictions, and we can give no assurance that such expectations will prove to be correct. We
undertake no obligation, other than as may be required under the federal securities laws, to
publicly update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise.

Factors, that could cause our actual results to differ materially from those projected, forecasted or
estimated by us in forward-looking statements are discussed in further detail in Selective’s public
filings with the United States Securities and Exchange Commission. These risk factors may not be
exhaustive. We operate in a continually changing business environment, and new risk factors
emerge from time-to-time. We can neither predict such new risk factors nor can we assess the
impact, if any, of such new risk factors on our businesses or the extent to which any factor or
combination of factors may cause actual results to differ materially from those expressed or
implied in any forward-looking statements in this report. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this report might not occur.

Forward Looking Statement

Financial Strength

Dale Thatcher

Executive Vice President

Chief Financial Officer & Treasurer

• 22-state super-regional

• $1.5B NPW

• 86% commercial lines

• 14% personal lines

• Distribution partner with 950
independent agents

• Best in class field model

• History of financial strength

• A.M. Best rated “A” or better for 75
years, and “A+” for past 48 years

Only 10% of P&C carriers rated A+ or better

Selective Profile

A Foundation of Financial Strength

$3.6B Invested Assets
as of March 31, 2009

Most asset classes became correlated in 2008

Conservative Investment Portfolio

Source: A.M. Best, Barclays Capital

Peers include: Auto-owners Insurance, CINF, CNA, THG, HGIC, Liberty Mutual,
Main Street America, OB, STFC, UFCS, Utica, Westfield

If alternative investments were written down to $0
book value per share would decrease by only $1.80

Asset Allocation to Equities and Other Investments
As of December 2008

Investment Strategy for the
Current Environment

Calendar Year Reserve
Development (p/t)

($10M)

($5M)

$7M

$16M

$18M

52.6%

54.8%

56.9%

57.5%

53.9%

Carried

$2,415M

Disciplined Reserving Practices
Actuarial Reserve Ranges

Percentages are net of tax, reinsurance and reinstatement premium.

RMS data as of 6/30/08; Equity data as of 3/31/09.

% of Equity at Risk

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

RMS Model

Strong Natural Catastrophe Program

As of March 31, 2009

Capital Position

• Premium to surplus: 1.8x

• Debt to total capitalization:

• Total: 23.1%

• Adjusted: 16.7%

• Weighted average life of debt: 35 years

The Journey Continues

with Sound Strategy

Greg Murphy

Chairman, President & CEO

Strategies for Long-Term Success

While each of these factors is important,
relationships drive the business

Strong Agency Relationships

100 Agency Management Specialists

140 Claims Management Specialists

1Q2009 Commercial lines new business growth of 12%

Best in Class Field Model

>4% (NJ)

3% to <4% (MD)

2% to <3% (RI & PA)

1% to <2% (NY)

0% to <1% (GA, KY, NC, SC, TN,
VA, IA, IL, IN, MI, MN, MO, WI, OH,
MA, CT, DE)

Not currently in footprint

SIGI’s current average market share = 1.1%.

At 5% market share, premiums would be > $6B

Selective’s Current Market Share

For lines < $50,000

5 & 4 Diamond

3 Diamond

2 & 1 Diamond

Percent of Total New Premium Diamond Distribution

WC, BOP, CPP, CA

Knowledge Management Tools Make a Difference

Retention

5 & 4 Diamond

3 Diamond

2 & 1 Diamond

As of March 31, 2009

Pricing

5 & 4 Diamond

3 Diamond

2 & 1 Diamond

As of March 31, 2009

Knowledge Management Tools Make a Difference

2006

2007

2008

2009

Q2TD

April and May each +0.4%

Commercial Lines Pure Price vs. Retention

Segment 41	94.6%
Segment 60	99.1%

Segment 21	87.2%
Segment 40	94.0%

Segment 1	65.4%
Segment 20	87.2%

Segment 61	99.3%
Segment 80	117.7%

Operational Areas

Marketing

Safety
Management

Training

Pricing

Average

Lower
Than

Average

Higher
Than
Average

Growth

Marketing
Materials

Stewardship

Service

Retention

Sales
Training

Boundary

Control

Corrective
Action

*Direct accident year combined ratio excluding umbrella, as of December 31, 2008

Business Segment

4-Year
Combined
Ratio*

Broad Underwriting Appetite
Enhanced through Knowledge Management

• $24M in-force price change on
$213M book

• Underwriting and automation
improvements - reduced operating
costs and increased data quality

• 13-state footprint opportunity -
$900 million

The Road
to
Profitability

Profitable by 2010

Key Claims Strategies

• Litigation management

• Vendor management

• Integrated outcomes

• Workers compensation

• Other casualty lines

*Fiscal-year dividend

Long-Term Shareholder Value Creation