Exhibit

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.

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.



	Page
Consolidated Financial Highlights	1
Consolidated Statements of Operations	2
Consolidated Balance Sheets	3
Financial Metrics	4

Consolidated Insurance Operations Statement of Operations	5
Standard Commercial Lines Statement of Operations and Supplemental Data	6
Standard Personal Lines Statement of Operations and Supplemental Data	7
Excess and Surplus Lines Statement of Operations and Supplemental Data	8

Consolidated Investment Income	9
Consolidated Composition of Invested Assets	10

Statutory Results by Line of Business - Quarter Ended September 30, 2017	11
Statutory Results by Line of Business - Year-to-Date Ended September 30, 2017	12

Reconciliation of Net Income to Operating Income and Certain Other Non-GAAP Measures	13

Ratings and Contact Information	14



		Quarter ended									Year-to-date
		Sept. 30,			June 30,	Mar. 31,		Dec. 31,		Sept. 30,	Sept. 30,	Sept. 30,
($ and shares in millions, except per share data)		2017			2017	2017		2016		2016	2017	2016

For Period Ended
	Gross premiums written	$	715.4		712.9	689.5		602.3		677.5	2,117.8	2,003.7
	Net premiums written	604.3			613.8	598.7		515.0		578.8	1,816.8	1,722.3
	Change in net premiums written, from comparable prior year period	4		%	6	6		9		6	5	8

	Underwriting income, before-tax	$	32.4		30.3	49.2		35.2		32.0	112.0	116.8
	Net investment income earned, before-tax	40.4			41.4	37.4		35.4		33.4	119.3	95.3
	Net realized investment gains (losses), before-tax	6.8			1.7	(1.0	)	(7.7	)	3.7	7.5	2.7

	Net income	$	46.7		41.4	50.4		39.4		38.5	138.6	119.1
	Operating income*	42.3			40.3	51.1		44.4		36.1	133.7	117.3

At Period End
	Total assets	7,812.1			7,528.2	7,404.1		7,355.8		7,363.2	7,812.1	7,363.2
	Total invested assets	5,710.8			5,503.0	5,460.8		5,364.9		5,368.4	5,710.8	5,368.4
	Stockholders' equity	1,699.4			1,652.6	1,592.6		1,531.4		1,574.9	1,699.4	1,574.9
	Shares outstanding	58.4			58.4	58.2		58.0		57.9	58.4	57.9

Per Share and Share Data
	Net income per diluted share	$	0.79		0.70	0.85		0.67		0.66	2.34	2.03
	Operating income per diluted share*	0.72			0.68	0.86		0.75		0.62	2.26	2.00

	Weighted average diluted shares outstanding	59.3			59.2	59.1		58.9		58.7	59.2	58.6

	Book value per share	$	29.10		28.32	27.34		26.42		27.22	29.10	27.22

	Dividends paid per share	0.16			0.16	0.16		0.16		0.15	0.48	0.45

Financial Ratios
	Loss and loss expense ratio	60.2		%	60.2	56.6		58.4		58.3	59.0	57.1
	Underwriting expense ratio	33.9			34.2	34.6		35.2		35.7	34.2	35.4
	Dividends to policyholders ratio	0.2			0.3	—		—		0.1	0.2	0.2
	GAAP combined ratio	94.3		%	94.7	91.2		93.6		94.1	93.4	92.7

	Annualized ROE	11.2			10.2	12.9		10.1		9.8	11.4	10.7

	Annualized operating ROE*	10.1			9.9	13.1		11.4		9.2	11.0	10.5

	Debt to total capitalization	20.5			21.0	21.6		22.3		21.2	20.5	21.2

	Net premiums written to policyholders' surplus	1.4		x	1.4x	1.4x		1.4x		1.4x	1.4x	1.4x

	Invested assets per dollar of stockholders' equity	$	3.36		3.33	3.43		3.50		3.41	3.36	3.41


*	Non-GAAP measure. Refer to Page 13 for definition.



		Quarter ended											Year-to-date
		Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
($ and shares in millions, except per share data)		2017			2017		2017		2016		2016		2017		2016

Revenues
	Net premiums earned	$	572.1		568.0		560.9		552.8		542.4		1,700.9		1,596.8
	Net investment income earned	40.4			41.4		37.4		35.4		33.4		119.3		95.3
	Net realized investment gains (losses)	6.9			3.0		2.4		(3.7	)	4.0		12.3		7.2
	Other-than-temporary impairments	(0.1		)	(1.2	)	(3.5	)	(4.0	)	(0.3	)	(4.8	)	(4.5	)
	Other income	2.0			3.3		3.2		1.9		2.2		8.5		7.0
	Total revenues	621.3			614.5		600.5		582.4		581.7		1,836.2		1,701.9

Expenses
	Losses and loss expenses incurred	344.6			341.6		317.5		322.9		316.3		1,003.6		911.9
	Policy acquisition costs	194.6			196.8		196.2		196.0		193.8		587.7		567.8
	Interest expense	6.1			6.1		6.1		5.8		5.7		18.3		16.9
	Other expenses	8.7			11.1		13.1		7.3		10.4		32.9		35.7
	Total expenses	554.0			555.6		532.9		532.0		526.2		1,642.4		1,532.3

Income before federal income taxes		67.3			58.9		67.6		50.3		55.4		193.8		169.6
Federal income tax expense		20.6			17.5		17.1		11.0		16.9		55.2		50.5

Net Income		$	46.7		41.4		50.4		39.4		38.5		138.6		119.1

Exclude: Net realized investment (gains) losses, after tax		(4.4		)	(1.1	)	0.7		5.0		(2.4	)	(4.9	)	(1.8	)

Operating income*		$	42.3		40.3		51.1		44.4		36.1		133.7		117.3

Weighted average shares outstanding (diluted)		59.3			59.2		59.1		58.9		58.7		59.2		58.6

	Net income per share (diluted)	$	0.79		0.70		0.85		0.67		0.66		2.34		2.03

	Operating income per share (diluted)*	$	0.72		0.68		0.86		0.75		0.62		2.26		2.00

*	Non-GAAP measure. Refer to Page 13 for definition.

	Note: Amounts may not foot due to rounding.



			Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
($ in millions, except per share data)			2017			2017		2017		2016		2016

ASSETS
Investments
	Fixed income securities, held-to-maturity, at carrying value		$	65.0		72.5		84.8		101.6		130.5
	Fixed income securities, available-for-sale, at fair value		5,133.4			5,018.7		4,867.0		4,792.5		4,832.5
	Equity securities, available-for-sale, at fair value		175.3			161.7		154.9		146.8		147.3
	Short-term investments		216.3			133.7		247.2		221.7		169.6
	Other investments		120.8			116.4		106.8		102.4		88.5
		Total investments	5,710.8			5,503.0		5,460.8		5,364.9		5,368.4
Cash			0.7			8.6		0.5		0.5		1.5
Interest and dividends due or accrued			40.8			40.2		40.2		40.2		39.9
Premiums receivable, net of allowance			769.8			764.3		707.7		681.6		711.6
Reinsurance recoverable, net of allowance			661.2			601.9		580.4		621.5		640.0
Prepaid reinsurance premiums			161.4			151.9		145.4		146.3		152.0
Current federal income tax			—			—		—		2.5		—
Deferred federal income tax			52.9			60.4		72.2		84.8		41.7
Property and equipment, net of accumulated depreciation and amortization			66.3			66.3		68.5		69.6		69.8
Deferred policy acquisition costs			242.2			234.9		227.6		222.6		235.9
Goodwill			7.8			7.8		7.8		7.8		7.8
Other assets			98.2			88.8		92.9		113.5		94.6
		Total assets	$	7,812.1		7,528.2		7,404.1		7,355.8		7,363.2

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Reserve for losses and loss expenses			$	3,835.8		3,731.2		3,679.5		3,691.7		3,686.6
Unearned premiums			1,393.8			1,352.1		1,299.8		1,262.8		1,306.3
Short-term debt			—			—		—		—		45.0
Long-term debt			439.0			438.9		438.8		438.7		378.6
Current federal income tax			6.7			2.1		11.6		—		6.5
Accrued salaries and benefits			113.1			103.2		96.3		132.9		103.6
Other liabilities			324.3			248.2		285.6		298.4		261.8
		Total liabilities	$	6,112.8		5,875.6		5,811.5		5,824.5		5,788.3

Stockholder's Equity
Preferred stock of $0 par value per share			$	—		—		—		—		—
Common stock of $2 par value per share			204.4			204.3		204.1		203.2		203.0
Additional paid-in capital			362.7			360.0		354.2		347.3		342.8
Retained earnings			1,679.0			1,641.8		1,609.9		1,568.9		1,538.9
Accumulated other comprehensive income (loss)			31.3			24.5		2.1		(16.0	)	62.2
Treasury stock, at cost			(578.1		)	(578.0	)	(577.7	)	(572.1	)	(572.1	)
		Total stockholders' equity	$	1,699.4		1,652.6		1,592.6		1,531.4		1,574.9
Commitments and contingencies

		Total liabilities and stockholders' equity	$	7,812.1		7,528.2		7,404.1		7,355.8		7,363.2

Note: Amounts may not foot due to rounding.



			Quarter ended												Year-to-date
			Sept. 30,				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
($ and shares in millions, except per share data)			2017				2017		2017		2016		2016		2017		2016

Book value per share
		Stockholders' equity	$	1,699.4			1,652.6		1,592.6		1,531.4		1,574.9		1,699.4		1,574.9
		Common shares issued and outstanding, at period end	58.4				58.4		58.2		58.0		57.9		58.4		57.9
		Book value per share	$	29.10			28.32		27.34		26.42		27.22		29.10		27.22
		Book value per share excluding unrealized gain on fixed income securities	27.92				27.25		26.65		25.98		25.53		27.92		25.53

Financial results (after-tax)
		Underwriting income	21.1				19.7		32.0		22.9		20.8		72.8		75.9
		Net investment income	29.6				30.3		27.5		26.4		24.9		87.3		72.0
		Interest expense	(4.0		)		(4.0	)	(4.0	)	(3.8	)	(3.7	)	(11.9	)	(11.0	)
		Other expense	(4.4		)		(5.8	)	(4.4	)	(1.1	)	(5.9	)	(14.5	)	(19.5	)
		Net realized gains (losses)	4.4				1.1		(0.7	)	(5.0	)	2.4		4.9		1.8
		Total after-tax net income	46.7				41.4		50.4		39.4		38.5		138.6		119.1

Return on average equity
		Insurance segments	5.0			%	4.9		8.2		5.9		5.3		6.0		6.8
		Net investment income	7.1				7.5		7.0		6.8		6.4		7.2		6.5
		Interest expense	(0.9		)		(1.0	)	(1.0	)	(1.0	)	(0.9	)	(1.0	)	(1.0	)
		Other expense	(1.1		)		(1.5	)	(1.1	)	(0.3	)	(1.6	)	(1.2	)	(1.8	)
		Net realized gains (losses), net of tax at 35%	1.1				0.3		(0.2	)	(1.3	)	0.6		0.4		0.2
		Annualized ROE	11.2				10.2		12.9		10.1		9.8		11.4		10.7
		Exclude: Net realized (gains) losses, net of tax at 35%	(1.1		)		(0.3	)	0.2		1.3		(0.6	)	(0.4	)	(0.2	)
		Annualized Operating ROE*	10.1			%	9.9		13.1		11.4		9.2		11.0		10.5

Debt and total capitalization
	Notes payable:
		1.61% Borrowings from FHLBNY	$	25.0			25.0		25.0		25.0		25.0		25.0		25.0
		1.56% Borrowings from FHLBNY	25.0				25.0		25.0		25.0		25.0		25.0		25.0
		3.03% Borrowings from FHLBI	60.0				60.0		60.0		60.0		—		60.0		—
		1.25% Borrowings from FHLBI	—				—		—		—		45.0		—		45.0
		7.25% Senior Notes	49.7				49.7		49.7		49.6		49.6		49.7		49.6
		6.70% Senior Notes	99.0				99.0		99.0		99.0		98.9		99.0		98.9
		5.875% Senior Notes	180.3				180.2		180.2		180.1		180.0		180.3		180.0
	Total debt		439.0				438.9		438.8		438.7		423.6		439.0		423.6
	Stockholders' equity		1,699.4				1,652.6		1,592.6		1,531.4		1,574.9		1,699.4		1,574.9
	Total capitalization		$	2,138.4			2,091.5		2,031.4		1,970.1		1,998.5		2,138.4		1,998.5
	Ratio of debt to total capitalization		20.5			%	21.0		21.6		22.3		21.2		20.5		21.2

Policyholders' surplus			$	1,684.4			1,653.2		1,622.3		1,583.8		1,551.2		1,684.4		1,551.2

*		Non-GAAP measure. Refer to Page 13 for definition.

		Note: Amounts may not foot due to rounding.



		Quarter ended												Year-to-date
		Sept. 30,				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
($ in millions)		2017				2017		2017		2016		2016		2017		2016

Underwriting results
Net premiums written		$	604.3			613.8		598.7		515.0		578.8		1,816.8		1,722.3
Change in net premiums written, from comparable prior year period		4			%	6		6		9		6		5		8

Net premiums earned		$	572.1			568.0		560.9		552.8		542.4		1,700.9		1,596.8
Losses and loss expenses incurred		344.6				341.6		317.5		322.9		316.3		1,003.6		911.9
Net underwriting expenses incurred		194.0				194.2		194.3		194.8		193.6		582.5		564.4
Dividends to policyholders		1.0				1.9		(0.1	)	(0.2	)	0.5		2.9		3.8
GAAP underwriting gain		$	32.4			30.3		49.2		35.2		32.0		112.0		116.8


Catastrophe losses		$	23.7			29.3		12.2		26.6		10.4		65.3		33.2
(Favorable) prior years' casualty reserve development		(9.9		)		(14.3	)	(14.4	)	(23.0	)	(19.0	)	(38.6	)	(46.0	)

Underwriting ratios
Loss and loss expense ratio		60.2			%	60.2		56.6		58.4		58.3		59.0		57.1
Underwriting expense ratio		33.9				34.2		34.6		35.2		35.7		34.2		35.4
Dividends to policyholders ratio		0.2				0.3		—		—		0.1		0.2		0.2
	Combined ratio	94.3			%	94.7		91.2		93.6		94.1		93.4		92.7


Catastrophe losses		4.1			pts	5.2		2.2		4.8		1.9		3.8		2.1
(Favorable) prior years' casualty reserve development		(1.7		)	pts	(2.5	)	(2.6	)	(4.2	)	(3.5	)	(2.3	)	(2.9	)
	Combined ratio before catastrophe losses	90.2			%	89.5		89.0		88.8		92.2		89.6		90.6

	Combined ratio before catastrophe losses and prior years' development	91.9				92.0		91.6		93.0		95.7		91.9		93.5

Other Statistics
Non-catastrophe property losses		$	71.8			73.3		71.4		70.0		78.5		216.5		209.2
Non-catastrophe property losses		12.6			pts	12.9		12.7		12.7		14.5		12.7		13.1
Direct new business		$	131.1			136.1		124.7		123.8		125.4		391.9		373.5


Note: Amounts may not foot due to rounding.



		Quarter ended												Year-to-date
		Sept. 30,				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
($ in millions)		2017				2017		2017		2016		2016		2017		2016

Underwriting results
Net premiums written		$	472.1			478.9		483.5		392.2		449.5		1,434.5		1,353.6
Change in net premiums written, from comparable prior year period		5			%	7		6		10		9		6		9

Net premiums earned		$	445.3			443.6		438.4		429.7		421.6		1,327.3		1,235.8
Losses and loss expenses incurred		254.9				252.9		241.6		230.3		238.2		749.3		683.2
Net underwriting expenses incurred		154.0				154.0		154.4		154.4		152.7		462.4		447.5
Dividends to policyholders		1.0				1.9		(0.1	)	(0.2	)	0.5		2.9		3.8
GAAP underwriting gain		$	35.3			34.8		42.5		45.2		30.1		112.6		101.2


Catastrophe losses		$	14.3			17.0		6.9		13.6		6.2		38.1		21.5
(Favorable) prior years' casualty reserve development		(19.9		)		(17.3	)	(16.4	)	(28.5	)	(19.0	)	(53.6	)	(49.0	)

Underwriting ratios
Loss and loss expense ratio		57.3			%	57.1		55.1		53.6		56.5		56.5		55.3
Underwriting expense ratio		34.6				34.7		35.2		35.9		36.3		34.8		36.2
Dividends to policyholders ratio		0.2				0.4		—		—		0.1		0.2		0.3
	Combined ratio	92.1			%	92.2		90.3		89.5		92.9		91.5		91.8


Catastrophe losses		3.2			pts	3.8		1.6		3.2		1.5		2.9		1.7
(Favorable) prior years' casualty reserve development		(4.5		)	pts	(3.9	)	(3.7	)	(6.6	)	(4.5	)	(4.0	)	(4.0	)
	Combined ratio before catastrophe losses	88.9			%	88.4		88.7		86.3		91.4		88.6		90.1

	Combined ratio before catastrophe losses and prior years' development	93.4				92.3		92.4		92.9		95.9		92.6		94.1

Other Statistics
Non-catastrophe property losses		$	49.1			48.2		49.8		45.6		51.6		147.0		136.8
Non-catastrophe property losses		11.0			pts	10.9		11.4		10.6		12.2		11.1		11.1
Direct new business		$	96.9			98.0		89.5		85.2		89.2		284.4		272.4
Renewal pure price increases		2.7			%	3.1		3.0		2.7		2.5		2.9		2.6
Retention		85			%	83		85		84		84		84		83


Note: Amounts may not foot due to rounding.



		Quarter ended										Year-to-date
		Sept. 30,			June 30,		Mar. 31,	Dec. 31,		Sept. 30,		Sept. 30,	Sept. 30,
($ in millions)		2017			2017		2017	2016		2016		2017	2016

Underwriting results
Net premiums written		$	81.2		78.1		64.7	68.1		76.2		224.0	213.8
Change in net premiums written, from comparable prior year period		7		%	3		4	3		(1	)	5	(2	)

Net premiums earned		$	72.6		71.7		71.2	70.9		68.7		215.5	209.7
Losses and loss expenses incurred		42.1			54.7		44.3	54.3		41.6		141.1	123.5
Net underwriting expenses incurred		22.3			22.7		21.8	23.2		22.8		66.8	67.2
GAAP underwriting gain (loss)		$	8.2		(5.8	)	5.1	(6.6	)	4.3		7.5	19.0


Catastrophe losses		$	2.2		9.4		3.9	11.4		2.5		15.4	6.8
Unfavorable prior years' casualty reserve development		—			3.0		2.0	2.5		—		5.0	—

Underwriting ratios
Loss and loss expense ratio		58.0		%	76.3		62.2	76.5		60.5		65.5	58.9
Underwriting expense ratio		30.7			31.7		30.6	32.8		33.3		31.0	32.0
	Combined ratio	88.7		%	108.0		92.8	109.3		93.8		96.5	90.9


Catastrophe losses		3.0		pts	13.0		5.5	16.0		3.6		7.2	3.2
Unfavorable prior years' casualty reserve development		—		pts	4.2		2.8	3.5		—		2.3	—
	Combined ratio before catastrophe losses	85.7		%	95.0		87.3	93.3		90.2		89.3	87.7

	Combined ratio before catastrophe losses and prior years' development	85.7			90.8		84.5	89.8		90.2		87.0	87.7

Other Statistics
Non-catastrophe property losses		$	19.1		20.0		16.3	17.6		18.9		55.4	53.6
Non-catastrophe property losses		26.3		pts	27.9		22.9	24.8		27.6		25.7	25.6
Direct new business		$	13.6		13.2		11.4	10.7		12.0		38.2	29.0
Renewal pure price increases		3.1		%	2.6		2.7	4.1		4.7		2.8	5.0
Retention		84		%	84		84	84		83		84	82


Note: Amounts may not foot due to rounding.



		Quarter ended										Year-to-date
		Sept. 30,				June 30,	Mar. 31,	Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
($ in millions)		2017				2017	2017	2016		2016		2017		2016

Underwriting results
Net premiums written		$	51.0			56.8	50.5	54.8		53.0		158.3		154.9
Change in net premiums written, from comparable prior year period		(4		)	%	6	4	6		(2	)	2		13

Net premiums earned		$	54.2			52.8	51.2	52.1		52.2		158.2		151.3
Losses and loss expenses incurred		47.6				34.0	31.6	38.3		36.5		113.2		105.2
Net underwriting expenses incurred		17.7				17.5	18.1	17.3		18.1		53.2		49.6
GAAP underwriting (loss) gain		$	(11.1	)		1.3	1.6	(3.5	)	(2.4	)	(8.2	)	(3.5	)


Catastrophe losses		$	7.3			3.0	1.4	1.6		1.7		11.7		4.9
Unfavorable prior years' casualty reserve development		10.0				—	—	3.0		—		10.0		3.0

Underwriting ratios
Loss and loss expense ratio		87.8			%	64.4	61.7	73.5		69.9		71.6		69.5
Underwriting expense ratio		32.6				33.1	35.2	33.1		34.6		33.6		32.8
	Combined ratio	120.4			%	97.5	96.9	106.6		104.5		105.2		102.3


Catastrophe losses		13.5			pts	5.7	2.7	3.1		3.3		7.4		3.2
Unfavorable prior years' casualty reserve development		18.4			pts	—	—	5.8		—		6.3		2.0
	Combined ratio before catastrophe losses	106.9			%	91.8	94.2	103.5		101.2		97.8		99.1

	Combined ratio before catastrophe losses and prior years' development	88.5				91.8	94.2	97.7		101.2		91.5		97.1

Other Statistics
Non-catastrophe property losses		$	3.7			5.1	5.3	6.8		7.9		14.1		18.8
Non-catastrophe property losses		6.8			pts	9.7	10.3	13.0		15.2		8.9		12.4
Direct new business		$	20.6			24.9	23.8	27.9		24.2		69.3		72.1
Overall new/renewal price increases		3.2			%	3.7	7.1	4.6		5.8		5.5		4.8


Note: Amounts may not foot due to rounding.



		Quarter ended												Year-to-date
		Sept. 30,				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
($ in millions)		2017				2017		2017		2016		2016		2017		2016

Net investment income
Fixed income securities
	Taxable	$	29.1			28.4		27.5		23.9		22.5		84.9		64.7
	Tax-exempt	9.8				9.3		9.4		9.6		10.0		28.5		31.2
Total fixed income securities		38.9				37.7		36.9		33.5		32.5		113.4		95.9
Equity securities		1.6				1.4		1.5		1.4		1.5		4.5		5.9
Other investments		2.7				5.2		1.6		3.0		1.6		9.5		—
Short-term investments		0.4				0.4		0.3		0.2		0.2		1.0		0.5
Investment income		43.5				44.7		40.2		38.1		35.8		128.4		102.2
Investment expenses		(3.1		)		(3.3	)	(2.8	)	(2.6	)	(2.4	)	(9.1	)	(6.9	)
Investment tax expense		(10.9		)		(11.1	)	(10.0	)	(9.0	)	(8.5	)	(32.0	)	(23.3	)
Total net investment income, after-tax		$	29.6			30.3		27.5		26.4		24.9		87.3		72.0

Net realized capital gains (losses)
	Fixed income securities	$	2.0			2.6		2.0		(6.8	)	2.2		6.6		3.1
	Equity securities	4.9				0.3		—		3.1		1.9		5.2		4.1
	Short-term investments	—				—		—		—		—		—		—
	Other investments	—				—		0.5		—		—		0.5		—
Gross gains (losses)		6.9				3.0		2.4		(3.7	)	4.0		12.3		7.2
Other-than-temporary impairment losses		(0.1		)		(1.2	)	(3.5	)	(4.0	)	(0.3	)	(4.8	)	(4.5	)
Total net realized capital gains (losses), before-tax		$	6.8			1.7		(1.0	)	(7.7	)	3.7		7.5		2.7

Change in unrealized gains (losses), before-tax		$	10.0			34.0		27.2		(110.0	)	(16.7	)	71.2		105.6


Average investment yields
	Fixed income securities, before-tax	3.0			%	3.0		3.0		2.7		2.6		3.0		2.7
	Fixed income securities, after-tax	2.2				2.2		2.2		2.0		2.0		2.2		2.0

	Total portfolio, before-tax	2.9			%	3.0		2.8		2.6		2.5		2.9		2.4
	Total portfolio, after-tax	2.1				2.2		2.0		2.0		1.9		2.1		1.8


Effective tax rate on net investment income		26.8			%	26.9		26.6		25.5		25.4		26.8		24.5
New money purchase rates for fixed income securities, before-tax		3.2				3.0		3.1		3.0		2.9		3.1		2.9
New money purchase rates for fixed income securities, after-tax		2.3				2.2		2.1		2.1		2.0		2.2		2.1
Effective duration of fixed income portfolio including short term (in years)		3.6				3.7		3.6		3.8		3.7		3.6		3.7


Note: Amounts may not foot due to rounding.



	Sept. 30,					June 30,		Mar. 31,		Dec. 31,		Sept. 30,
	2017					2017		2017		2016		2016
($ in millions)	Amount		Percent			Amount	Percent	Amount	Percent	Amount	Percent	Amount	Percent

Fixed income securities, at fair value	$	5,201.1	91.0		%	5,094.3	92.5	4,955.4	90.7	4,897.8	91.2	4,968.6	92.5
Equity securities, at fair value	175.3		3.1			161.7	2.9	154.9	2.8	146.8	2.7	147.3	2.7
Other investments	120.8		2.1			116.4	2.1	106.8	2.0	102.4	1.9	88.5	1.6
Short-term investments	216.3		3.8			133.7	2.4	247.2	4.5	221.7	4.1	169.6	3.2
Total investments	$	5,713.6	100.0		%	5,506.1	100.0	5,464.3	100.0	5,368.6	100.0	5,374.0	100.0

Fixed income portfolio, at carry value
U.S. government obligations	$	59.6	1.1		%	68.0	1.3	88.3	1.8	77.3	1.6	89.9	1.8
Foreign government obligations	18.8		0.4			18.7	0.4	32.6	0.7	26.9	0.5	9.5	0.2
Obligations of state and political subdivisions	1,526.6		29.4			1,458.7	28.7	1,349.9	27.3	1,457.4	29.8	1,551.5	31.3
Corporate securities	1,812.1		34.9			1,840.1	36.1	1,850.2	37.4	2,020.3	41.3	2,219.7	44.7
Collateralized loan obligations and other asset-backed securities	754.0		14.5			702.5	13.8	678.4	13.7	529.0	10.8	284.5	5.7
Residential mortgage-backed securities	719.2		13.8			724.0	14.2	688.6	13.9	525.2	10.7	538.9	10.9
Commercial mortgage-backed securities	308.1		5.9			279.2	5.5	263.8	5.3	258.0	5.3	269.1	5.4
Total fixed income securities	$	5,198.4	100.0		%	5,091.2	100.0	4,951.8	100.0	4,894.1	100.0	4,963.0	100.0

Weighted average credit quality
Investment grade credit quality	$	5,047.1	97.0		%	4,944.2	97.1	4,807.3	97.0	4,747.7	96.9	4,805.6	96.7
Non-investment grade credit quality	154.0		3.0			150.1	2.9	148.1	3.0	150.0	3.1	163.1	3.3
Total fixed income securities, at fair value	$	5,201.1	100.0		%	5,094.3	100.0	4,955.4	100.0	4,897.8	100.0	4,968.6	100.0

Weighted average credit quality of fixed income portfolio	AA-					AA-		AA-		AA-		AA-


Expected maturities of fixed income securities at carry value
Due in one year or less	$	364.9	7.0		%	341.0	6.7	371.4	7.5	429.6	8.8	550.3	11.1
Due after one year through five years	2,178.3		41.9			2,124.7	41.7	2,026.9	40.9	2,179.1	44.5	2,466.0	49.7
Due after five years through 10 years	2,386.0		45.9			2,388.0	46.9	2,302.5	46.5	2,099.2	42.9	1,831.6	36.9
Due after 10 years	269.3		5.2			237.6	4.7	251.0	5.1	186.2	3.8	115.1	2.3
Total fixed income securities	$	5,198.4	100.0		%	5,091.2	100.0	4,951.8	100.0	4,894.1	100.0	4,963.0	100.0



Alternative investments	September 30, 2017
							Current
	Number of		Original			Remaining	Market
Strategy	Funds		Commitment			Commitment	Value
Private equity	24		$	191.3		81.5	47.7
Private credit	12		126.0			53.6	33.3
Real assets	9		101.0			31.5	21.6
Total	45		$	418.3		166.6	102.6


Note: Amounts may not foot due to rounding.



	Net						Net								Underwriting		Dividends to	Combined		Combined
	Premiums		Percent				Premiums		Percent			Loss	LAE		Expense		Policyholders	Ratio		Ratio		Underwriting
($ in thousands)	Written		Change				Earned		Change			Ratio	Ratio		Ratio		Ratio	2017		2016		Gain/(Loss)
Standard Personal Lines:

Homeowners	$	36,363	0.6			%	$	32,215	0.6		%	38.5	8.5		33.3		—	80.3		86.4		$	4,966
Auto	43,154		13.2				38,612		10.7			62.3	10.5		32.0		—	104.8		110.3		(3,312		)
Other (including flood)	1,678		(15.2		)		1,774		(1.2	)		50.8	(113.3	)	(172.0	)	—	(234.5	)	(165.3	)	5,771
Total	$	81,195	6.5				$	72,601	5.7			51.4	6.6		28.4		—	86.4		92.0		$	7,425

Standard Commercial Lines:

Commercial property	$	84,664	2.4				$	78,151	5.5			46.9	5.1		37.0		0.1	89.1		85.2		$	6,076
Workers compensation	80,252		(1.7		)		77,580		(1.3	)		41.3	10.5		28.2		1.3	81.3		80.2		13,736
General liability	147,858		4.5				141,059		5.3			35.0	13.2		34.9		—	83.1		84.7		21,475
Auto	121,749		12.1				111,711		11.0			72.9	8.7		31.5		—	113.1		114.5		(17,744		)
Businessowners' policies	24,602		2.6				25,019		2.3			45.9	11.1		38.1		—	95.1		106.8		1,374
Bonds	8,488		26.2				7,420		28.0			11.3	6.0		56.0		—	73.3		75.0		1,385
Other	4,438		3.6				4,310		5.4			0.3	0.3		59.2		—	59.8		60.6		1,657
Total	$	472,051	5.0				$	445,250	5.6			47.6	9.8		34.1		0.2	91.7		92.0		$	27,959

E&S	$	51,031	(3.7		)		$	54,204	3.9			71.1	16.7		32.3		—	120.1		101.4		$	(9,883	)

Total Insurance Operations	$	604,277	4.4				$	572,055	5.5			50.2	10.1		33.2		0.2	93.7		92.9		$	25,501

Note: Amounts may not foot due to rounding.

			2017				2016
	Losses Paid		$	249,478			226,037
	LAE Paid		48,905				48,335
	Total Paid		$	298,383			274,372



	Net						Net									Underwriting		Dividends to		Combined		Combined
	Premiums		Percent				Premiums		Percent			Loss		LAE		Expense		Policyholders		Ratio		Ratio		Underwriting
($ in thousands)	Written		Change				Earned		Change			Ratio		Ratio		Ratio		Ratio		2017		2016		Gain/(Loss)
Standard Personal Lines:

Homeowners	$	97,993	(0.7		)	%	$	97,382	(1.0	)	%	47.7		8.7		35.2		—		91.6		85.4		$	7,967
Auto	120,945		9.9				113,225		6.3			65.2		10.7		32.8		—		108.7		106.4		(12,426		)
Other (including flood)	5,060		1.6				4,867		0.3			63.9		(59.4	)	(149.1	)	—		(144.6	)	(146.2	)	12,196
Total	$	223,998	4.8				$	215,474	2.7			57.3		8.2		29.7		—		95.2		90.7		$	7,737

Standard Commercial lines:

Commercial property	$	247,138	4.0				$	232,594	6.8			49.5		5.3		37.4		(0.1	)	92.1		85.0		$	12,823
Workers compensation	253,446		0.6				236,366		2.8			43.1		13.5		27.0		1.5		85.1		82.8		30,726
General liability	461,716		6.9				422,546		8.0			32.2		11.8		34.2		—		78.2		83.9		78,533
Auto	358,198		10.0				327,156		10.9			69.5		10.1		31.5		(0.1	)	111.0		108.9		(45,771		)
Businessowners' policies	75,923		2.5				74,853		2.5			41.6		11.2		37.8		—		90.6		94.7		6,657
Bonds	24,642		26.4				20,904		23.5			1.6		6.2		53.8		—		61.6		76.8		6,024
Other	13,453		4.8				12,839		8.2			(0.1	)	0.2		56.9		—		57.0		56.9		5,168
Total	$	1,434,516	6.0				$	1,327,258	7.4			46.2		10.3		33.5		0.2		90.2		90.1		$	94,160

E&S	$	158,281	2.2				$	158,207	4.5			56.3		15.3		33.0		—		104.6		100.9		$	(7,285	)

Total Insurance Operations	$	1,816,795	5.5				$	1,700,939	6.5			48.5		10.5		33.0		0.2		92.2		91.2		$	94,612

Note: Amounts may not foot due to rounding.

			2017				2016
	Losses Paid		$	744,964			678,430
	LAE Paid		151,837				145,504
	Total Paid		$	896,801			823,934



	Quarter ended												Year-to-date
	Sept. 30,				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
($ in millions, except per share data)	2017				2017		2017		2016		2016		2017		2016

Reconciliation of net income to operating income
Net income	$	46.7			41.4		50.4		39.4		38.5		138.6		119.1
Exclude: Net realized (gains) losses	(6.8		)		(1.7	)	1.0		7.7		(3.7	)	(7.5	)	(2.7	)
Exclude: Tax on net realized gains (losses)	2.4				0.6		(0.4	)	(2.7	)	1.3		2.6		0.9
Operating income	$	42.3			40.3		51.1		44.4		36.1		133.7		117.3


Reconciliation of net income per diluted share to operating income per diluted share
Net income per diluted share	$	0.79			0.70		0.85		0.67		0.66		2.34		2.03
Exclude: Net realized (gains) losses	(0.11		)		(0.03	)	0.02		0.13		(0.06	)	(0.13	)	(0.05	)
Exclude: Tax on net realized gains (losses)	0.04				0.01		(0.01	)	(0.05	)	0.02		0.05		0.02
Operating income per diluted share	$	0.72			0.68		0.86		0.75		0.62		2.26		2.00


Reconciliation of annualized ROE to annualized operating ROE
Annualized ROE	11.2			%	10.2		12.9		10.1		9.8		11.4		10.7
Exclude: Net realized (gains) losses	(1.6		)		(0.4	)	0.3		2.0		(0.9	)	(0.6	)	(0.2	)
Exclude: Tax on net realized gains (losses)	0.5				0.1		(0.1	)	(0.7	)	0.3		0.2		—
Annualized operating ROE	10.1			%	9.9		13.1		11.4		9.2		11.0		10.5



Operating income, operating earnings per share, and operating return on equity differ from net income, earnings per share, and return on equity, respectively, by the exclusion of after-tax net realized gains and losses on investments and the results of discontinued operations, if any. They are used as important financial measures by management, analysts, and investors, because the realization of net investment gains and losses in any given period is largely discretionary as to timing. In addition, these net realized investment gains and losses, as well as other-than-temporary investment impairments that are charged to earnings and the results of discontinued operations, could distort the analysis of trends. These operating measurements are not intended as a substitute for net income, earnings per share, or return on equity prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income, earnings per share, and return on equity to operating income, operating earnings per share, and operating return on equity, respectively, are provided in the tables above. Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners Accounting Practices and Procedures Manual and, therefore, is not reconciled to GAAP.







Note: Amounts may not foot due to rounding.



Address:	As of September 30, 2017
40 Wantage Avenue		A.M. Best	Standard & Poor's	Moody's	Fitch
Branchville, NJ 07890	Financial Strength Ratings:	A	A	A2	A+

Corporate Website:	Long-Term Debt Credit Rating:	bbb+	BBB	Baa2	BBB+
www.Selective.com



Investor Contact:	REGISTRAR AND TRANSFER AGENT
Rohan Pai	Wells Fargo Shareowner Services
Senior Vice President	P.O. Box 64854
Investor Relations & Treasurer	St. Paul, MN 55164
Phone: 973-948-1364	866-877-6351
Rohan.Pai@Selective.com

Media Contact:
Jamie M. Beal
Assistant Vice President
Director of Communications
Phone: 973-948-1234
Jamie.Beal@Selective.com


▪	difficult conditions in global capital markets and the economy;


▪	deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and fluctuations in interest rates;


▪	ratings downgrades could affect investment values and, therefore, statutory surplus;


▪	the adequacy of our loss reserves and loss expense reserves;


▪	the frequency and severity of natural and man-made catastrophic events, including, but not limited to, hurricanes, tornadoes, windstorms, earthquakes, hail, terrorism, explosions, severe winter weather, floods, and fires;


▪	adverse market, governmental, regulatory, legal, or judicial conditions or actions;


▪	our ability to collect on reinsurance and the solvency of our reinsurers;


▪	uncertainties related to insurance premium rate increases and business retention;


▪	changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states;


▪	recent federal financial regulatory reform provisions that could pose certain risks to our operations;


▪	our ability to maintain favorable ratings from rating agencies, including A.M. Best, Standard & Poor’s, Moody’s, and Fitch;


▪	other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and other periodic reports.