8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)  April 27, 2011
SELECTIVE INSURANCE GROUP, INC.
(Exact name of registrant as specified in its charter)
New Jersey	001-33067	22-2168890
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
40 Wantage Avenue, Branchville, New Jersey		07890
(Address of principal executive offices)		(Zip Code)
Registrant's telephone number, including area code   (973) 948-3000
Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02.            Results of Operations and Financial Condition.

On April 27, 2011, Selective Insurance Group, Inc. (the “Company”) issued a press release announcing results for the first quarter ended March 31, 2011.  The press release is attached hereto as Exhibit 99.1.

Section 7 – Regulation FD

Item 7.01.            Regulation FD Disclosure.

Attached as Exhibit 99.2 is supplemental financial information about the Company.

The information contained in this report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.  The Company makes no admission as to the materiality of any information in this report or the exhibits attached hereto.

Section 9 – Financial Statements and Exhibits

Item 9.01.            Financial Statements and Exhibits.

(d)           Exhibits

99.1   Press Release of Selective Insurance Group, Inc. dated April 27, 2011

99.2   Supplemental Investor Package, First Quarter 2011

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SELECTIVE INSURANCE GROUP, INC.
Date:  April 27, 2011	By:  /s/ Michael H. Lanza Michael H. Lanza Executive Vice President and General Counsel

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of Selective Insurance Group, Inc. dated April 27, 2011
99.2	Supplemental Investor Package, First Quarter 2011

EX-99

Selective Insurance Group, Inc.

40 Wantage Avenue

Branchville, New Jersey 07890

www.selective.com

For release at 4:15 p.m. (ET) on April 27, 2011

Investor Contact: Jennifer DiBerardino

973-948-1364, jennifer.diberardino@selective.com

Media Contact: Gail Petersen

973-948-1307, gail.petersen@selective.com

Selective Insurance Group Reports

First Quarter 2011 Earnings

Branchville, NJ – April 27, 2011 – Selective Insurance Group, Inc. (NASDAQ: SIGI) today reported its financial results for the first quarter ended March 31, 2011.  Net income for the quarter was $0.39 per diluted share and operating income1 was $0.32 per diluted share.  Net investment income, after tax, increased 20% to $32.1 million compared to first quarter 2010.

“We had a good start to the year with our eighth consecutive quarter achieving price increases,” said Chairman, President and Chief Executive Officer Gregory E. Murphy. “Our Commercial Lines renewal pure price was up 2.8% for the quarter due to our excellent agency relationships and our sophisticated underwriting and granular pricing capabilities.  Although recent news reports indicate that the industry is attempting to be more disciplined, it certainly does not appear to be widespread.

“The overall statutory combined ratio was 102.6% for the quarter,” said Murphy.  “Catastrophe losses were $7 million including favorable catastrophe loss development of $5 million, the result of hail losses that did not materialize.  In addition, there was $4 million in favorable casualty development that was partially offset by other property development of $1 million.

“Our Commercial Lines statutory combined ratio improved to 100.6% from 101.9% a year ago,” Murphy continued.  “Overall net premiums written were down 2% primarily due to pressure on commercial lines new business from a highly competitive market and a slow economic recovery.  We are experiencing lower commercial lines audit return premiums, which were $3.7 million, a 68% improvement over the same period last year.

“Investment income, after tax, was $32 million, an increase of 20% over first quarter 2010,” said Murphy.  “These results were higher than expected due to very positive alternative investment performance.  We anticipate returns will normalize over the balance of the year.”

Selective’s first quarter 2011 highlights compared to first quarter 2010:

·   Net income was up 271% to $21.5 million, or $0.39 per diluted share, compared to $5.8 million, or $0.11 per diluted share;

·   Net realized gains on investments increased $3.8 million, after tax, or $0.07 per diluted share, including non-cash other-than-temporary impairments of $0.4 million, after tax, compared to $5.4 million, after tax;

·   Operating income1 increased 168% to $17.8 million, or $0.32 per diluted share, compared to $6.6 million, or $0.12 per diluted share;

·   Combined ratio: GAAP: 103.2% compared to 104.1%; Statutory: 102.6% compared to 102.8%;

·   Total net premiums written (NPW) were down 2% to $361.8 million;

o   Commercial Lines NPW were down 4% to $300.3 million;

o   Personal Lines NPW were up 9% to $61.5 million;

·   Catastrophe losses were $4.4 million, after tax, versus $15.7 million, after tax;

·   Net investment income, after tax, increased 20% to $32.1 million; and

·   Casualty reserve development was favorable $4 million compared to $9 million.

Balance Sheet and Guidance

At March 31, 2011, Selective’s assets were $5.3 billion, up 1% over year end 2010.  Stockholders’ equity was up 1% to $1.1 billion and book value per share increased 1% to $20.06 for the quarter.  Statutory surplus ended the quarter at $1.1 billion.

Selective’s Board of Directors declared a $0.13 per share quarterly cash dividend on common stock payable June 1, 2011 to stockholders of record as of May 13, 2011.

Selective expects to generate a full year statutory and GAAP combined ratios of between 101% and 102%, which includes an elevated catastrophe loss assumption of 2 points and no assumptions for additional reserve development, favorable or unfavorable.  Weighted average shares at year end are expected to be approximately 55 million.

The supplemental investor packet, including financial information that is not part of this press release, is available on the Investors’ page of Selective’s public website at www.selective.com.   Selective’s quarterly analyst conference call will be simulcast at 8:30 a.m. ET, on April 28, 2011 at www.selective.com. The webcast will be available for rebroadcast until the close of business on May 27, 2011.

About Selective Insurance Group, Inc.

Selective Insurance Group, Inc. is a holding company for seven property and casualty insurance companies rated “A+” (Superior) by A.M. Best.  Through independent agents, the insurance companies offer primary and alternative market insurance for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program.  Selective maintains a website at www.selective.com.

Forward-Looking Statements

In this press release, Selective and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations and projections regarding Selective's future operations and performance.

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, include, but are not limited to:

·   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;

·   the concentration of our business in the Eastern Region;

·   the cost and availability of reinsurance;

·   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, particularly changes in New Jersey automobile insurance laws and regulations;

·   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;

·   our entry into new markets and businesses; and

·   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.

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.

Selective’s SEC filings can be accessed through the Investors and Corporate Governance sections of Selective’s website, www.selective.com, or through the SEC’s EDGAR Database at www.sec.gov (Selective EDGAR CIK No. 0000230557).

1Operating income differs from net income by the exclusion of realized gains or losses on investments and the results of discontinued operations. It is used as an important financial measure by management, analysts and investors, because the realization of investment gains and losses on sales in any given period is largely discretionary as to timing. In addition, these 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. Operating income is not intended as a substitute for net income prepared in accordance with U.S. generally accepted accounting principles (GAAP). A reconciliation of operating income to net income is provided in the GAAP Highlights and Reconciliation of Non-GAAP Measures to Comparable GAAP Measures. 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.

Selective Insurance Group, Inc. (Nasdaq: SIGI) *

GAAP Highlights and Reconciliation of Non-GAAP Measures to Comparable

GAAP Measures

(in thousands, except per share data)
3 months ended March 31:	2011			2010
Net premiums written	$	361,835			368,091
Net premiums earned		351,343			356,202
Net investment income earned		43,473			34,706
Net realized gains (losses)		5,760			(64	)
Total revenues		403,456			393,112
Operating income		17,805			6,635
Net realized gains (losses), net of tax		3,744			(42	)
Loss from discontinued operations, net of tax		-			(790	)
Net income	$	21,549			5,803
Statutory combined ratio		102.6	%		102.8	%
Statutory combined ratio, excluding catastrophe losses		100.7	%		96.0	%
GAAP combined ratio		103.2	%		104.1	%
Operating income per diluted share	$	0.32			0.12
Net income per diluted share		0.39			0.11
Weighted average diluted shares		55,054			54,217
Book value per share	$	20.06			18.97

*All amounts included in this release exclude intercompany transactions.

EX-99

Exhibit 99.2

Supplemental Investor Package

_______________________________________________

First Quarter 2011

Investor Contact:

Jennifer DiBerardino

Senior Vice President, Investor Relations and Treasurer

Tel:  973-948-1364

jennifer.diberardino@selective.com

Selective Insurance Group, Inc.
Selected Balance Sheet Data (unaudited)
($ in thousands, except per share amounts)
	March 31,								March 31,								December 31,
	2011								2010								2010
						Unrealized/								Unrealized/								Unrealized/
	Balance			Market		Unrecognized			Balance			Market		Unrecognized			Balance			Market		Unrecognized
	Sheet			Value		Gain/(Loss)			Sheet			Value		Gain/(Loss)			Sheet			Value		Gain/(Loss)
Invested Assets:
Corporate bonds1, 3	$	1,743,751			1,763,993		33,499		$	1,214,670			1,241,554		6,040			1,683,336			1,704,600		35,334
Government and municipal bonds3		1,846,872			1,865,194		71,228			2,116,682			2,129,245		71,224			1,873,730			1,894,436		77,913
Total bonds		3,590,623			3,629,187		104,727			3,331,352			3,370,799		77,264			3,557,066			3,599,036		113,247
Equities		77,138			77,138		9,034			82,240			82,240		16,644			69,636			69,636		11,597
Short-term investments		156,437			156,437		-			282,131			282,131		-			161,155			161,155		-
Other investments		136,148			136,148		(2,500	)		148,060			148,060		(24,032	)		137,865			137,865		(4,982	)
Total invested assets		3,960,346			3,998,910		111,261			3,843,783			3,883,230		69,876			3,925,722			3,967,692		119,862
Invested assets per $ of stockholders' equity		3.65								3.81								3.67
Total assets		5,275,226								5,288,321								5,231,772
Liabilities:
Reserve for losses and loss expenses		2,864,889								2,812,231								2,830,058
Unearned premium reserve		833,823								857,349								823,596
Total liabilities		4,191,573								4,278,159								4,160,663
Stockholders' equity		1,083,653								1,010,162								1,071,109
Total debt to capitalization ratio		19.5	%							21.4	%							19.7	%
Adjusted total debt to capitalization ratio 2		13.9	%							15.5	%							14.0	%
Book value per share		20.06								18.97								19.95
Book value per share excluding
unrealized gain or loss on bond portfolio		19.26								18.51								19.09
NPW per insurance segment employee		760								777								761
Statutory premiums to surplus ratio		1.3	x							1.4	x							1.3	x
Statutory surplus		1,083,848								993,981								1,073,025

1 Includes mortgage-backed and asset-backed securities.

2 The adjusted debt to capitalization ratio reflects an estimated equity treatment of 75% applied to our $100 million Junior Subordinated Notes issued September 25, 2006.

3 Certain prior year amounts were reclassified to conform with current year presentation.

Selective Insurance Group, Inc.
Selected Income Statement Data (unaudited)
March 2011				Three Months Ended March 31,
($ in thousands, except per share amounts)				2011			2010
					Per diluted share			Per diluted share
Consolidated
	Revenue		$	403,456		$	393,112
	Operating income			17,805	0.32		6,635	0.12
	Net realized gains (losses), after tax			3,744	0.07		(42)	-
	Income from continuing operations			21,549	0.39		6,593	0.12
	Loss on discontinued operations, after tax			-	-		(790)	(0.01)
	Net income			21,549	0.39		5,803	0.11
	Operating return on equity			6.6%			2.6%
Insurance Operations
	Gross premiums written			428,995			433,078
	Net premiums written			361,835			368,091
	Net premiums earned			351,343			356,202
	Underwriting loss	- before tax		(11,084)			(14,605)
		- after tax		(7,205)	(0.13)		(9,493)	(0.18)
	GAAP combined ratio			103.2%			104.1%
Commercial lines
	Net premiums earned			286,763			297,908
	GAAP combined ratio			101.7%			103.7%
Personal lines
	Net premiums earned			64,580			58,294
	GAAP combined ratio			109.7%			106.2%
Investments
	Net investment income	- before tax		43,473			34,706
		- after tax		32,125	0.58		26,825	0.49
	Effective tax rate			26.1%			22.7%
	Annual after-tax yield on investment portfolio			3.3%			2.8%
	Annual after-tax, after-interest expense yield			3.0%			2.3%
	Invested assets per $ of stockholders' equity			3.65			3.81
Other expenses (net of other income)
	Interest expense	- before tax		(4,557)			(4,842)
		- after tax		(2,962)	(0.05)		(3,147)	(0.06)
	Other - after tax		$	(4,153)	(0.08)	$	(7,550)	(0.13)
Diluted weighted avg. shares outstanding				55,054			54,217

Selective Insurance Group, Inc. and Consolidated Subsidiaries GAAP Investment Income  (unaudited)  ($ in thousands)
	Year to Date						%
	March			March			Increase
	2011			2010			(Decrease)
Investment Income:
Interest:
Fixed Maturity Securities		33,123			33,196			(0	)
Short-term		62			100			(38	)
Alternative Investments		11,641			3,895			199
Dividends		317			452			(30	)
Miscellaneous		25			37			(32	)
		45,168			37,680			20
Investment Expense		1,695			2,974			(43	)
Net Investment Income Before Tax		43,473			34,706			25
Tax		11,348			7,881			44
Net Investment Income After Tax	$	32,125			26,825			20
Net Investment Income per Share	$	0.58			0.49			18
Effective Tax Rate		26.1	%		22.7	%
Average Yields :
Fixed Maturity Securities:
Pre Tax		3.57	%		3.66	%
After Tax		2.75	%		2.88	%
Portfolio:
Pre Tax		4.41	%		3.64	%
After Tax		3.26	%		2.81	%
	Year to date:
		March			March
Net Realized Gains (Losses)		2011			2010
Fixed Maturities		(443	)		(4,011	)
Equity Securities		6,203			3,947
Total		5,760			(64	)
Net of Tax		3,744			(42	)

Selective Insurance Group, Inc.
2011 Statutory Results by Line of Business
March 2011 YTD (unaudited)
($ in thousands)
	Net					Net											Underwriting			Dividends to
	Premiums		Percent			Premiums		Percent			Loss			LAE			Expense			Policyholders			Combined Ratio			Combined Ratio			Underwriting
	Written		Change			Earned		Change			Ratio			Ratio			Ratio			Ratio			2011			2010			Gain/(Loss)
Personal Lines:
Homeowners	$	22,195		21.4	%	$	24,555		19.8	%		69.7	%		7.9	%		34.4	%		0.0	%		112.0	%		114.8	%	$	(2,139	)
Auto		36,396		3.0	%		36,962		7.7	%		75.9	%		11.3	%		31.6	%		0.0	%		118.8	%		115.5	%		(6,786	)
Other (including flood)		2,910		13.7	%		3,064		(12.0	)%		75.4	%		(15.8	)%		(40.1	)%		0.0	%		19.5	%		(38.3	)%		2,405
Total	$	61,501		9.5	%	$	64,580		10.8	%		73.5	%		8.7	%		29.3	%		0.0	%		111.5	%		107.1	%	$	(6,520	)
Commercial Lines:
Commerical property	$	48,331		(3.6	)%	$	48,193		(4.3	)%		44.0	%		5.5	%		37.2	%		0.1	%		86.8	%		108.4	%	$	6,307
Workers compensation		67,768		(6.1	)%		62,526		(3.3	)%		80.7	%		16.0	%		24.2	%		1.9	%		122.8	%		116.7	%		(15,545	)
General liability		88,772		(0.9	)%		82,566		(3.1	)%		50.1	%		17.6	%		32.6	%		0.0	%		100.3	%		92.8	%		(2,276	)
Auto		71,729		(5.0	)%		69,670		(6.3	)%		56.5	%		5.4	%		30.3	%		0.1	%		92.3	%		90.9	%		4,774
Business owners policies		16,468		(3.9	)%		16,485		1.2	%		60.0	%		13.6	%		38.4	%		0.0	%		112.0	%		134.0	%		(1,971	)
Bonds		4,521		(3.7	)%		4,767		3.6	%		6.6	%		5.6	%		61.0	%		0.0	%		73.2	%		92.5	%		1,427
Other		2,745		0.7	%		2,556		2.0	%		4.5	%		0.2	%		42.4	%		0.0	%		47.1	%		47.6	%		1,271
Total	$	300,334		(3.7	)%	$	286,763		(3.7	)%		56.7	%		11.7	%		31.8	%		0.4	%		100.6	%		101.9	%	$	(6,013	)
Grand Total	$	361,835		(1.7	)%	$	351,343		(1.4	)%		59.8	%		11.1	%		31.3	%		0.4	%		102.6	%		102.8	%	$	(12,533	)
Note: Some amounts may not foot due to rounding.
				2011			2010
	Losses Paid		$	188,841		$	182,223
	LAE Paid			38,014			36,094
	Total Paid		$	226,855		$	218,317

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Year on Year Retention
as of March 31, 2011 (unaudited)
Year on Year Retention
	2008												2009												2010												2011
		Q1		Q2		Q3		Q4		Total				Q1		Q2		Q3		Q4		Total				Q1		Q2		Q3		Q4		Total				Q1
Commercial Lines		81.0	%	80.4	%	80.6	%	80.2	%		80.6	%		80.5	%	79.0	%	78.8	%	78.7	%		79.3	%		79.3	%	78.9	%	79.6	%	79.2	%		79.2	%		80.3	%
Personal Lines		82.7	%	82.5	%	83.0	%	82.4	%		82.7	%		81.2	%	82.1	%	83.4	%	84.2	%		82.7	%		84.3	%	84.9	%	84.8	%	85.4	%		84.8	%		85.5	%
Total		81.6	%	81.2	%	81.6	%	81.1	%		81.4	%		80.7	%	80.1	%	80.6	%	80.8	%		80.6	%		81.1	%	81.1	%	81.8	%	81.8	%		81.4	%		82.2	%

SELECTIVE INSURANCE GROUP, INC.	Unaudited
CONSOLIDATED BALANCE SHEETS	March 31,			December 31,
($ in thousands, except share amounts)	2011			2010
ASSETS
Investments:
Fixed maturity securities, held-to-maturity – at carrying value
(fair value:  $1,192,423 – 2011; $1,256,294 – 2010)	$	1,153,859			1,214,324
Fixed maturity securities, available-for-sale – at fair value
(amortized cost:  $2,382,976 – 2011; $2,285,988 – 2010)		2,436,764			2,342,742
Equity securities, available-for-sale – at fair value
(cost of:  $68,104 – 2011; $58,039 – 2010)		77,138			69,636
Short-term investments (at cost which approximates fair value)		156,437			161,155
Other investments		136,148			137,865
Total investments		3,960,346			3,925,722
Cash		496			645
Interest and dividends due or accrued		36,651			37,007
Premiums receivable, net of allowance for uncollectible
accounts of:  $4,608 – 2011; $4,691 – 2010		430,063			414,105
Reinsurance recoverables, net		331,387			318,752
Prepaid reinsurance premiums		110,061			110,327
Current federal income tax		6,919			11,200
Deferred federal income tax		93,574			93,234
Property and equipment – at cost, net of accumulated
depreciation and amortization of:  $153,961 – 2011; $151,704 – 2010		40,780			41,775
Deferred policy acquisition costs		210,245			209,627
Goodwill		7,849			7,849
Other assets		46,855			61,529
Total assets	$	5,275,226			5,231,772
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for losses and loss expenses	$	2,864,889			2,830,058
Unearned premiums		833,823			823,596
Notes payable		262,339			262,333
Accrued salaries and benefits		95,957			100,933
Other liabilities		134,565			143,743
Total liabilities	$	4,191,573			4,160,663
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:  96,838,773 – 2011; 96,362,667 – 2010		193,678			192,725
Additional paid-in capital		248,575			244,613
Retained earnings		1,190,528			1,176,155
Accumulated other comprehensive income		2,776			7,024
Treasury stock – at cost (shares:  42,821,299 – 2011; 42,686,204 – 2010)		(551,904	)		(549,408	)
Total stockholders’ equity		1,083,653			1,071,109
Commitments and contingencies
Total liabilities and stockholders’ equity	$	5,275,226			5,231,772

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended
	March 31,
($ in thousands, except per share amounts)	2011			2010
Revenues:
Net premiums earned	$	351,343			356,202
Net investment income earned		43,473			34,706
Net realized gains (losses):
Net realized investment gains		6,390			8,176
Other-than-temporary impairments		(532	)		(6,073	)
Other-than-temporary impairments on fixed maturity securities
recognized in other comprehensive income		(98	)		(2,167	)
Total net realized gains (losses)		5,760			(64	)
Other income		2,880			2,268
Total revenues		403,456			393,112
Expenses:
Losses and loss expenses incurred		249,206			254,143
Policy acquisition costs		113,430			116,002
Interest expense		4,557			4,842
Other expenses		8,491			10,478
Total expenses		375,684			385,465
Income from continuing operations, before federal income tax		27,772			7,647
Federal income tax expense (benefit):
Current		4,276			8,844
Deferred		1,947			(7,790	)
Total federal income tax expense		6,223			1,054
Net income from continuing operations		21,549			6,593
Loss on disposal of discontinued operations, net of tax of $(426) – 2010		-			(790	)
Net income	$	21,549			5,803
Earnings per share:
Basic net income from continuing operations	$	0.40			0.12
Basic net loss from disposal of discontinued operations		-			(0.01	)
Basic net income	$	0.40			0.11
Diluted net income from continuing operations	$	0.39			0.12
Diluted net loss from disposal of discontinued operations		-			(0.01	)
Diluted net income	$	0.39			0.11
Dividends to stockholders	$	0.13			0.13

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
	Quarter ended March 31,
($ in thousands, except per share amounts)	2011					2010
Common stock:
Beginning of year	$	192,725					191,646
Dividend reinvestment plan
(shares:  22,697 – 2011; 25,759 – 2010)		46					51
Stock purchase and compensation plans
(shares:  453,409 – 2011; 79,289 – 2010)		907					159
End of period		193,678					191,856
Additional paid-in capital:
Beginning of year		244,613					231,933
Dividend reinvestment plan		360					368
Stock purchase and compensation plans		3,602					3,309
End of period		248,575					235,610
Retained earnings:
Beginning of year		1,176,155					1,138,978
Net income		21,549		21,549			5,803		5,803
Dividends to stockholders ($0.13 per share – 2011 and 2010)		(7,176	)				(7,077	)
End of period		1,190,528					1,137,704
Accumulated other comprehensive income (loss):
Beginning of year		7,024					(12,460	)
Other comprehensive income (loss), increase (decrease) in:
Unrealized (losses) gains on investment securities:
Non-credit portion of other-than-temporary impairment losses
recognized in other comprehensive income, net of deferred income tax		117					1,478
Other net unrealized (losses) gains on investment securities, net of
deferred income tax		(5,107	)				4,583
Total unrealized (losses) gains on investment securities		(4,990	)	(4,990	)		6,061		6,061
Defined benefit pension plans, net of deferred income tax		742		742			626		626
End of period		2,776					(5,773	)
Comprehensive income				17,301					12,490
Treasury stock:
Beginning of year		(549,408	)				(547,722	)
Acquisition of treasury stock
(shares:  135,095 – 2011; 97,493 – 2010)		(2,496	)				(1,513	)
End of period		(551,904	)				(549,235	)
Total stockholders’ equity	$	1,083,653					1,010,162

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW	Quarter ended
	March 31,
($ in thousands)	2011			2010
Operating Activities
Net income	$	21,549			5,803
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,001			7,451
Loss on disposal of discontinued operations		-			790
Stock-based compensation expense		4,625			6,169
Undistributed income of equity method investments		(2,482	)		(3,895	)
Net realized (gains) losses		(5,760	)		64
Deferred income tax expense (benefit)		1,947			(7,790	)
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverables		22,196			34,518
Increase in unearned premiums, net of prepaid reinsurance and advance premiums		11,297			11,647
Decrease in net federal income tax recoverable		4,281			7,698
Increase in premiums receivable		(15,958	)		(10,543	)
(Increase) decrease in deferred policy acquisition costs		(618	)		1,024
Decrease (increase) in interest and dividends due or accrued		355			(730	)
Decrease in accrued salaries and benefits		(6,466	)		(7,100	)
Decrease in accrued insurance expenses		(17,082	)		(17,187	)
Other-net		2,105			5,176
Net adjustments		6,441			27,292
Net cash provided by operating activities		27,990			33,095
Investing Activities
Purchase of fixed maturity securities, available-for-sale		(114,320	)		(142,067	)
Purchase of equity securities, available-for-sale		(59,780	)		(23,915	)
Purchase of other investments		(5,008	)		(7,714	)
Purchase of short-term investments		(316,769	)		(303,668	)
Sale of subsidiary		415			844
Sale of fixed maturity securities, available-for-sale		14,907			39,632
Sale of short-term investments		321,487			235,386
Redemption and maturities of fixed maturity securities, held-to-maturity		38,483			80,963
Redemption and maturities of fixed maturity securities, available-for-sale		19,771			66,122
Sale of equity securities, available-for-sale		56,836			16,419
Distributions from other investments		9,122			-
Sale of other investments		16,357			13,337
Purchase of property and equipment		(1,366	)		(866	)
Net cash used in investing activities		(19,865	)		(25,527	)
Financing Activities
Dividends to stockholders		(6,605	)		(6,492	)
Acquisition of treasury stock		(2,496	)		(1,513	)
Net proceeds from stock purchase and compensation plans		1,008			625
Excess tax benefits from share-based payment arrangements		(181	)		(856	)
Net cash used in financing activities		(8,274	)		(8,236	)
Net decrease in cash		(149	)		(668	)
Cash, beginning of year		645			811
Cash, end of period	$	496			143

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Balance Sheets
($ in thousands)
	Mar-31			Dec-31
	2011			2010
ASSETS
Bonds	$	3,510,801			3,482,204
Common stocks		77,138			69,636
Affiliated mortgage loan		38,625			38,785
Other investments		169,325			174,067
Short-term investments		117,145			111,021
Total investments		3,913,034			3,875,713
Cash on hand and in banks		(30,395	)		(30,343	)
Interest and dividends due and accrued		36,719			37,172
Premiums receivable		427,526			410,809
Reinsurance recoverable on paid losses and expenses		5,383			5,013
Deferred tax recoverable		132,040			133,100
EDP equipment		1,247			1,409
Equities and deposits in pools and associations		6,988			6,681
Receivable for sold securities		112			16,738
Other assets		30,357			30,164
Total assets	$	4,523,011			4,486,456
LIABILITIES
Reserve for losses	$	2,132,892			2,111,557
Reinsurance payable on paid loss and loss expense		1,093			1,030
Reserve for loss expenses		402,600			401,508
Unearned premiums		723,761			713,268
Reserve for commissions payable		31,000			43,590
Ceded balances payable		12,568			12,835
Federal income tax payable		10,743			1,645
Premium and other taxes payable		18,968			23,466
Borrowed money		13,018			13,018
Reserve for dividends to policyholders		2,686			2,390
Reserves for unauthorized reinsurance		1,811			1,811
Payable for securities		9,155			5,028
Funds withheld on account of others		5,743			7,015
Accrued salaries and benefits		57,442			61,353
Other liabilities		15,683			13,917
Total liabilities		3,439,163			3,413,431
POLICYHOLDERS' SURPLUS
Capital		28,325			28,325
Aggregate write-ins for special surplus funds		37,353			40,521
Paid in surplus		255,792			255,792
Unassigned surplus		762,378			748,387
Total policyholders' surplus		1,083,848			1,073,025
Total liabilities and policyholders' surplus	$	4,523,011			4,486,456

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Statements Of Income
($ in thousands)
	Three Months Ended
	March
UNDERWRITING	2011					2010
Net premiums written	$	361,835					368,091
Net premiums earned		351,343					356,202
Net losses paid		188,841					182,223
Change in reserve for losses		21,335					33,047
Net losses incurred		210,176		59.8	%		215,270		60.4	%
Net loss expenses paid		38,014					36,094
Change in reserve for loss expenses		1,092					2,583
Net loss expenses incurred		39,106		11.1	%		38,677		10.9	%
Net underwriting expenses incurred		114,809		31.7	%		115,151		31.3	%
Total deductions		364,091					369,098
Statutory underwriting loss		(12,748	)				(12,896	)
Net loss from premium balances charged off		(1,358	)				(1,521	)
Finance charges and other income		2,859					2,359
Total other income		1,501		-0.4	%		838		-0.2	%
Policyholders' dividends incurred		(1,286	)	0.4	%		(1,495	)	0.4	%
Total underwriting loss		(12,533	)	102.6	%		(13,553	)	102.8	%
INVESTMENT
Net investment income earned		41,258					33,201
Net realized gain / (loss)		5,760					(48	)
Total income before income tax		34,485					19,600
Federal income tax expense		9,270					11,498
Net income	$	25,215					8,102
Policyholders' Surplus
Surplus, beginning of period	$	1,073,025					981,955
Net income		25,215					8,102
Change in deferred tax		447					8,183
Change in unrealized gains		51					7,118
Dividends to stockholders		(14,506	)				(12,003	)
Change in non-admitted assets		2,784					13
Change in additional admitted deferred tax		(3,168	)				613
Net change in surplus for period		10,823					12,026
Surplus, end of period	$	1,083,848					993,981
Statutory underwriting (loss) / gain :	$	(12,533	)				(13,553	)
Adjustments under GAAP:
Deferred policy acquisition costs		618					(1,024	)
Pension costs		903					396
Other, net		(72	)				(424	)
GAAP underwriting (loss) / gain:	$	(11,084	)				(14,605	)
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
Alternative Investments (Insurance Cos Portfolio)
as of March 31, 2011
(unaudited)
(unaudited)				Paid in
	Inception	Original		Contributed		Remaining		Total		Current		YTD			DPI(1)		TVPI(2)
Fund	Year	Commitment		Capital		Commitment		Distributions		Market Value		Income			Ratio		Ratio
Real Estate
LEH RE II	2005		20,000,000		17,456,594		2,543,406		7,594,167		11,626,062		868,652			0.44		1.10
LEH RE III	2008		15,000,000		6,837,113		8,162,887		58,228		3,334,120		(99,963	)		0.01		0.50
Total - Real Estate			35,000,000		24,293,707		10,706,293		7,652,395		14,960,182		768,689			0.31		0.93
Mezzanine Financing
LEH Euro Mezz	2004		9,000,000		9,000,000		-		12,355,149		1,797,123		(111,787	)		1.37		1.57
GS Mezz V	2007		25,000,000		9,876,546		15,123,454		7,062,730		7,128,503		471,857			0.72		1.44
Total - Mezz. Financing			34,000,000		18,876,546		15,123,454		19,417,879		8,925,626		360,070			1.03		1.50
Distressed Debt
Varde VIII	2006		10,000,000		10,000,000		-		807,224		11,137,288		428,507			0.08		1.19
GS Distressed Opp III	2007		15,000,000		11,450,751		3,549,249		1,567,873		9,960,181		544,828			0.14		1.01
Total - Distressed Debt			25,000,000		21,450,751		3,549,249		2,375,097		21,097,469		973,335			0.11		1.09
Private Equity
Prospector	1997		5,000,000		5,000,000		-		13,965,078		441,602		30,158			2.79		2.88
Trilantic Capital Partners III	2004		10,000,000		8,877,838		1,122,162		10,652,582		5,465,246		1,555,568			1.20		1.82
NB Co-Invest	2006		15,000,000		12,598,769		2,401,231		6,443,969		8,989,711		562,430			0.51		1.23
Trilantic Capital Partners IV	2007		11,098,351		6,704,215		4,394,136		326,625		7,405,398		428,573			0.05		1.15
Total - Private Equity			41,098,351		33,180,822		7,917,529		31,388,255		22,301,957		2,576,730			0.95		1.62
Private Equity, Secondary Market
NB SOF	2005		12,000,000		11,100,506		899,494		5,826,576		7,285,349		431,038			0.52		1.18
GS Vintage IV	2007		20,000,000		14,576,802		5,423,198		5,442,440		13,249,870		599,479			0.37		1.28
NB SOF II	2008		12,000,000		5,581,088		6,418,912		1,168,202		6,263,369		618,328			0.21		1.33
Total - Pvt. Eq. Sec. Mkt.			44,000,000		31,258,396		12,741,604		12,437,218		26,798,588		1,648,844			0.40		1.26
Energy/Power Generation
ArcLight I	2002		15,000,000		13,344,495		1,655,505		29,480,487		-		827,571			2.21		2.21
ArcLight II	2003		15,000,000		12,704,508		2,295,492		21,878,138		3,741,954		1,075,287			1.72		2.02
ArcLight III	2006		15,000,000		12,962,206		2,037,794		6,383,865		12,644,147		975,575			0.49		1.47
Quintana Energy	2006		10,000,000		7,765,984		2,234,016		392,978		8,326,580		1,034,228			0.05		1.12
ArcLight IV	2007		10,000,000		7,595,767		2,404,233		4,150,461		7,596,835		642,144			0.55		1.55
Total - Energy/Power Generation			65,000,000		54,372,960		10,627,040		62,285,929		32,309,516		4,554,805			1.15		1.74
Venture Capital
Venture V	2001		10,000,000		8,800,000		1,200,000		2,315,065		7,083,643		758,243			0.26		1.07
Total - Venture Capital			10,000,000		8,800,000		1,200,000		2,315,065		7,083,643		758,243			0.26		1.07
TOTAL - ALTERNATIVE INVESTMENTS		$	254,098,351		192,233,182		61,865,169		137,871,837		133,476,981		11,640,715			0.72		1.41
(1) Distributed to paid in ratio
(2) Total value to paid in ratio
Note: Some amounts may not foot due to rounding

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Municipal Bond Portfolio

State and Repayment Source Composition

March 31, 2011

($s  in thousands)

(unaudited)

Exposure = 62% Held-to-Maturity; 38% Available-for-Sale

Repayment Source Composition by State %s
Market Values
State	Revenue	% of State	General Obligation (GO)-Local	% of State	General Obligation (GO)-State	% of State	TX - Permanent School Fund (PSF)	% of State	Total	% of Total
TX	71,026	61%	43,836	38%	1,036	1%	-	0%	115,898	8%
TX-PSF	-	0%	-	0%	-	0%	48,388	100%	48,388	3%
WA	45,158	50%	45,341	50%	-	0%	-	0%	90,499	6%
AZ	67,982	91%	6,693	9%	-	0%	-	0%	74,675	5%
FL	68,614	99%	-	0%	504	1%	-	0%	69,118	5%
NC	22,982	34%	22,844	34%	21,724	32%	-	0%	67,550	5%
NY	66,439	100%	-	0%	-	0%	-	0%	66,439	5%
OH	36,726	63%	13,644	24%	7,315	13%	-	0%	57,685	4%
IL	37,241	65%	19,653	35%	-	0%	-	0%	56,894	4%
MN	6,817	13%	5,211	10%	40,617	77%	-	0%	52,645	4%
CO	20,726	41%	27,896	55%	1,865	4%	-	0%	50,487	4%
Pre-refunded	49,596	54%	29,740	32%	12,408	14%	-	0%	91,744	6%
Other	378,853	66%	121,729	21%	75,830	13%	-	0%	576,412	41%
Grand Total	872,160	62%	336,587	24%	161,299	11%	48,388	3%	1,418,434	100%

Selective Insurance Group, Inc. and Consolidated Subsidiaries Credit Quality of Available-for-Sale Fixed Maturity Securities March 31, 2011 ($ in millions) (unaudited)
	Fair Value		Unrealized Gain (Loss)			Average Credit Quality
AFS Fixed Maturity Portfolio:
U.S. government obligations1	$	323.2		6.9		AAA
Foreign government obligations		20.4		(0.1	)	AA
State and municipal obligations		543.6		22.0		AA+
Corporate securities		1,040.6		17.9		A
Mortgage-backed securities ("MBS")		450.2		7.0		AA+
Asset-backed securities ("ABS")2		58.8		0.1		AA+
Total AFS fixed maturity portfolio	$	2,436.8		53.8		AA
State and Municipal Obligations:
Government obligations	$	296.9		11.4		AA+
Special revenue obligations		246.7		10.6		AA
Total state and municipal obligations	$	543.6		22.0		AA+
Corporate Securities:
Financial	$	320.9		5.5		A+
Industrials		78.0		3.3		A
Utilities		62.8		(0.1	)	A-
Consumer discretion		83.6		0.6		A-
Consumer staples		115.3		1.7		A
Health care		140.1		3.2		AA-
Materials		48.7		0.5		BBB+
Energy		54.1		1.3		A
Information technology		64.4		0.2		A+
Telecommunications services		49.6		0.1		A-
Other		23.1		1.6		AA+
Total corporate securities	$	1,040.6		17.9		A
Mortgage-backed securities:
Government Guaranteed Agency CMBS	$	69.7		2.4		AAA
Non-agency CMBS		33.0		(1.3	)	A
Government Guaranteed Agency RMBS		89.5		3.0		AAA
Other Agency RMBS		211.3		3.2		AAA
Non-agency RMBS		37.8		(0.2	)	BBB-
Alternative-A ("Alt-A") RMBS		8.9		(0.1	)	AA+
Total MBS	$	450.2		7.0		AA+
Asset-backed securities:
ABS	$	58.0		0.1		AAA
Sub-prime ABS2,3		0.8		-		D
Total ABS	$	58.8		0.1		AA+
1 U.S. Government includes coporate securities fully guaranteed by the FDIC.
2 We define sub-prime exposure as exposure to direct and indirect investments in non-agency residential mortgages with average FICO® scores below 650.
3 Sub-prime ABS consists of one security that is currently expected by rating agencies to default on its obligations.

Selective Insurance Group, Inc. and Consolidated Subsidiaries Credit Quality of Held-to-Maturity Securities March 31, 2011 ($ in millions) (unaudited)
	Fair Value		Carry Value		Unrecognized Holding Gain (Loss)			Unrealized Gain (Loss) in Accumulated Other Comprehensive Income			Total Unrealized Unrecognized Gain (Loss)			Average Credit Quality
HTM Fixed Maturity Portfolio:
U.S. government obligations1	$	97.8		94.2		3.6			4.5			8.1		AAA
Foreign government obligations		5.4		5.7		(0.3	)		0.4			0.1		AA+
State and municipal obligations		874.8		859.8		15.0			19.2			34.2		AA
Corporate securities		81.5		72.8		8.7			(3.7	)		5.0		A
Mortgage-backed securities ("MBS")		122.0		111.8		10.2			(5.7	)		4.5		AA+
Asset-backed securities ("ABS")		10.9		9.6		1.3			(2.3	)		(1.0	)	A
Total HTM fixed maturity portfolio	$	1,192.4		1,153.9		38.5			12.4			50.9		AA
State and Municipal Obligations:
Government obligations	$	249.3		245.0		4.3			8.9			13.2		AA
Special revenue obligations		625.5		614.8		10.7			10.3			21.0		AA
Total state and municipal obligations	$	874.8		859.8		15.0			19.2			34.2		AA
Corporate Securities:
Financial	$	23.6		20.3		3.3			(2.2	)		1.1		A-
Industrials		22.5		19.3		3.2			(1.2	)		2.0		A
Utilities		16.6		16.0		0.6			(0.1	)		0.5		A
Consumer discretion		7.7		7.0		0.7			0.2			0.9		AA-
Consumer staples		5.3		5.0		0.3			(0.1	)		0.2		A
Materials		2.2		1.9		0.3			(0.1	)		0.2		BBB-
Energy		3.6		3.3		0.3			(0.2	)		0.1		BBB-
Total corporate securities	$	81.5		72.8		8.7			(3.7	)		5.0		A
Mortgage-backed securities:
Government guaranteed agency CMBS	$	8.0		7.8		0.2			-			0.2		AAA
Non-agency CMBS		40.2		32.6		7.6			(6.7	)		0.9		AA
Government guaranteed agency RMBS		4.4		3.9		0.5			(0.1	)		0.4		AAA
Other agency RMBS		69.3		67.4		1.9			1.1			3.0		AAA
Non-agency RMBS		0.1		0.1		-			-			-		BBB
Total MBS	$	122.0		111.8		10.2			(5.7	)		4.5		AA+
Asset-backed securities:
ABS	$	8.0		7.0		1.0			(0.8	)		0.2		A-
Alt-A ABS		2.9		2.6		0.3			(1.5	)		(1.2	)	AA-
Total ABS	$	10.9		9.6		1.3			(2.3	)		(1.0	)	A
1 U.S. Government includes coporate securities fully guaranteed by the FDIC.