Exhibit 99.2

Supplemental Investor Package

Fourth Quarter 2007

Investor Contact:

Jennifer DiBerardino

Vice President, Investor Relations

Tel:  973-948-1364

Jennifer.diberardino@selective.com

Selective Insurance Group, Inc.
Selected Balance Sheet Data (unaudited)
($ in thousands, except per share amounts)
		December 31,				December 31,
		2007				2006
		Balance	Market	Unrealized		Balance	Market	Unrealized
		Sheet	Value	Gain (Loss)		Sheet	Value	Gain
Invested Assets:
Corporate bonds	$	1,282,643	1,282,645	(910)	$	994,170	994,172	9,848
Gov't\ Municipal bonds		1,796,687	1,796,829	24,688		1,952,752	1,953,001	10,619
Total bonds		3,079,330	3,079,474	23,778		2,946,922	2,947,173	20,467
Equities		274,705	274,705	114,315		307,376	307,376	149,512
Short term investments		190,167	190,167	-		197,019	197,019	-
Other investments		188,827	188,827	30,647		144,785	144,785	25,801
Total invested assets		3,733,029	3,733,173	168,740		3,596,102	3,596,353	195,780
Total assets		5,001,992				4,767,705
Liabilities:
Reserve for losses		2,182,572				1,959,485
Reserve for loss expenses		359,975				329,285
Unearned premium reserve		841,348				791,540
Total liabilities		3,925,949				3,690,478
Stockholders' equity		1,076,043				1,077,227
Total debt to capitalization ratio		21.5%				25.2%
Adjusted total debt to capitalization ratio *		15.2%				18.2%
Book value per share		19.81				18.81
Book value per share excluding
FAS 115 unrealized gain or loss on bond portfolio		19.53				18.58
NPW per insurance segment employee		797				827
Statutory premiums to surplus ratio		1.5x				1.5x
Statutory surplus		1,034,294				1,030,078
* 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)
December 31, 2007	THREE MONTHS ENDED DECEMBER 31,												TWELVE MONTHS ENDED DECEMBER 31,
($ in thousands, except per share amounts)	2007						2006						2007						2006
				Per diluted share						Per diluted share						Per diluted share						Per diluted share
Consolidated
Revenue	$	466,611					$	458,954					$	1,846,228						1,807,867
Operating income		32,243			0.60			37,253			0.62			124,818			2.21			140,512			2.28
Net realized gains, after tax		3,997			0.07			6,290			0.10			21,680			0.38			23,062			0.37
Net Income		36,240			0.67			43,543			0.72			146,498			2.59			163,574			2.65
Operating return on equity		12.2	%					14.0	%					11.6	%					13.7	%
Insurance Operations
Gross premiums written		369,702						347,471						1,752,248						1,694,093
Net premiums written		323,236						306,925						1,554,867						1,535,961
Net premiums earned		382,682						377,180						1,517,306						1,499,664
Underwriting profit - before tax		1,264						11,463						15,957						57,978
- after tax		822			0.02			7,451			0.12			10,372			0.18			37,686			0.60
GAAP combined ratio		99.7	%					97.0	%					98.9	%					96.1	%
Commercial lines
Net premiums earned		331,044						324,892						1,314,002						1,285,876
GAAP combined ratio		95.9	%					95.5	%					96.8	%					95.1	%
Personal lines
Net premiums earned		51,638						52,288						203,304						213,788
GAAP combined ratio		123.8	%					106.3	%					112.9	%					102.6	%
Diversified Insurance Services
Revenue		26,380						26,415						115,566						110,526
Income  - after tax		2,358			0.04			2,791			0.05			12,355			0.22			11,848			0.19
Return on revenue		8.9	%					10.6	%					10.7	%					10.7	%
Investments
Net investment income - before tax		49,965						44,519						174,144						156,802
- after tax		37,315			0.68			34,105			0.56			133,669			2.34			121,460			1.94
Effective tax rate		25.3	%					23.4	%					23.2	%					22.5	%
Annual after-tax yield on investment portfolio														3.6	%					3.6	%
Annual after-tax, after-interest expense yield														3.2	%					3.1	%
Invested assets per $ of stockholders' equity													$	3.47						3.34
Other expenses (net of other income)
Interest expense - before tax		(5,640	)					(6,369	)					(23,795	)					(21,411	)
Actual interest expense - after tax		(3,666	)					(4,140	)					(15,467	)					(13,917	)
Interest expense addback for dilution - after tax		208						407						1,293						2,213
Adjusted interest expense - after tax		(3,458	)		(0.06	)		(3,733	)		(0.06	)		(14,174	)		(0.25	)		(11,704	)		(0.19	)
Other - after tax	$	(4,586	)		(0.08	)	$	(2,954	)		(0.05	)		(16,111	)		(0.28	)		(16,565	)		(0.26	)
Diluted weighted avg shares outstanding		54,746						61,382						57,165						62,542

Selective Insurance Group, Inc.
2007 Statutory Results by Line of Business
December 2007 YTD (unaudited)
($ in thousands)
	Net Premiums		Percent			Net Premiums		Percent			Loss			LAE			Underwriting Expense			Dividends to Policyholders			Combined Ratio			Combined Ratio			Underwriting
	Written		Change			Earned		Change			Ratio			Ratio			Ratio			Ratio			2007			2006			Gain/(Loss)
Personal Lines:
Homeowners	$	65,439		(9.4	)%	$	62,280		5.0	%		67.8	%		8.4	%		38.5	%		0.0	%		114.7	%		103.6	%	$	(10,341	)
Auto		130,124		(5.3	)%		132,944		(9.4	)%		64.5	%		13.2	%		31.9	%		0.0	%		109.6	%		103.4	%	$	(11,858	)
Other (including flood)		8,506		13.6	%		8,081		4.7	%		111.4	%		(10.6	)%		(71.0	)%		0.0	%		29.8	%		(57.4	)%		5,978
Total	$	204,069		(6.0	)%	$	203,304		(4.9	)%		67.4	%		10.8	%		29.7	%		0.0	%		107.9	%		98.2	%	$	(16,221	)
Commercial Lines:
Fire/IM	$	198,903		5.3	%	$	190,681		4.6	%		50.3	%		4.1	%		38.2	%		0.1	%		92.7	%		82.1	%	$	10,788
Workers' compensation		336,189		3.4	%		325,657		3.6	%		62.2	%		12.3	%		25.1	%		2.0	%		101.6	%		108.4	%		(7,904	)
General liability		420,388		1.7	%		410,024		1.8	%		49.0	%		16.0	%		33.7	%		0.1	%		98.8	%		96.5	%		1,599
Auto		319,176		(0.2	)%		315,259		(1.5	)%		49.8	%		8.1	%		30.1	%		0.1	%		88.1	%		88.1	%		36,319
BOP		55,642		9.2	%		52,877		8.6	%		60.7	%		11.5	%		37.5	%		0.0	%		109.7	%		102.4	%		(6,174	)
Bonds		19,248		2.0	%		19,087		9.1	%		23.1	%		1.5	%		59.8	%		0.0	%		84.4	%		74.7	%		2,875
Other		9,113		29.1	%		8,271		53.1	%		(0.6	)%		0.3	%		41.6	%		0.0	%		41.3	%		32.3	%		4,503
Total	$	1,358,659		2.6	%	$	1,321,857		2.4	%		52.4	%		11.0	%		32.0	%		0.5	%		95.9	%		95.0	%	$	42,008
Grand Total	$	1,562,728		1.4	%	$	1,525,162		1.4	%		54.4	%		11.0	%		31.6	%		0.5	%		97.5	%		95.4	%	$	25,787
Note: Some amounts may not foot due to rounding.

	2007		2006
Losses Paid	$	635,173	$	613,732
LAE Paid		133,983		123,358
Total Paid	$	769,156	$	737,090

Selective Insurance Group, Inc.

2007 Statutory Results by Line of Business

4th Qtr 2007 (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			2007			2006			Gain/(Loss)
Personal Lines:
Homeowners	$	16,382		8.8	%	$	16,153		6.5	%		78.2	%		10.6	%		37.7	%		0.0	%		126.5	%		106.1	%	$	(4,362	)
Auto		31,158		3.8	%		33,307		(5.1	)%		76.5	%		8.7	%		31.6	%		0.0	%		116.8	%		108.6	%		(4,932	)
Other (including flood)		2,292		11.0	%		2,179		7.8	%		137.7	%		8.9	%		(48.8	)%		0.0	%		97.8	%		(26.9	)%		102
Total	$	49,832		5.7	%	$	51,638		(1.2	)%		79.6	%		9.3	%		29.9	%		0.0	%		118.8	%		102.4	%	$	(9,192	)
Commercial Lines:
Fire/IM	$	42,560		8.8	%	$	49,024		4.7	%		47.3	%		4.5	%		42.4	%		0.4	%		94.6	%		76.9	%	$	5,376
Workers' compensation		63,302		2.4	%		82,236		2.0	%		66.5	%		8.2	%		30.4	%		3.1	%		108.2	%		108.9	%		(989	)
General liability		85,447		9.4	%		103,177		1.9	%		43.6	%		18.7	%		37.5	%		0.2	%		100.0	%		103.0	%		6,643
Auto		63,488		0.2	%		77,948		(1.0	)%		54.0	%		8.5	%		31.6	%		0.4	%		94.5	%		93.6	%		8,872
BOP		14,292		11.3	%		13,696		8.6	%		40.4	%		12.1	%		37.8	%		0.0	%		90.3	%		125.8	%		1,106
Bonds		4,349		0.2	%		4,809		2.4	%		36.6	%		(2.0	)%		62.1	%		0.0	%		96.7	%		55.8	%		447
Other		2,039		22.1	%		2,243		35.2	%		(1.6	)%		0.3	%		48.1	%		0.0	%		46.8	%		41.3	%		1,290
Total	$	275,477		5.4	%	$	333,132		2.1	%		51.7	%		11.0	%		35.7	%		1.0	%		99.4	%		98.5	%	$	22,745
Grand Total	$	325,309		5.5	%	$	384,771		1.6	%		55.5	%		10.7	%		34.9	%		0.8	%		101.9	%		99.0	%	$	13,553

Note: Some amounts may not foot due to rounding.

	2007		2006
Losses Paid	$	151,857	$	172,924
LAE Paid		36,233		31,516
Total Paid	$	188,090	$	204,440

Selective Insurance Group, Inc.
Diversified Insurance Services
($ in thousands)
Three Months Ended December 31, 2007 (unaudited)
	Revenue							Net Income							Return on Revenue
	2007		2006		% Change			2007		2006		% Change			2007			2006			Pt Change
Flood		10,754		9,648		11	%		1,220		1,239		-2	%		11.3	%		12.8	%		(1.5	)
Human Resource Administration Outsourcing		13,339		15,052		-11	%		442		984		-55	%		3.3	%		6.5	%		(3.2	)
Other		2,287		1,715		33	%		696		568		22	%		30.4	%		33.3	%		(2.9	)
Total		26,380		26,415		0	%		2,358		2,791		-16	%		8.9	%		10.6	%		(1.7	)
Twelve Months Ended December 31, 2007 (unaudited)
	Revenue							Net Income							Return on Revenue
	2007		2006		% Change			2007		2006		% Change			2007			2006			Pt Change
Flood		47,842		41,522		15	%		6,734		6,609		2	%		14.1	%		15.9	%		(1.8	)
Human Resource Administration Outsourcing		59,109		63,322		-7	%		2,862		3,399		-16	%		4.8	%		5.4	%		(0.6	)
Other		8,615		5,682		52	%		2,759		1,840		50	%		32.0	%		32.4	%		(0.4	)
Total		115,566		110,526		5	%		12,355		11,848		4	%		10.7	%		10.7	%		-
Human Resource Administration Outsourcing Statistics (unaudited)
	2007		2006		% Change
New Worksite EE - Selective Agents (Production)		2,025		3,691		-45	%
Total New Worksite EE - All Agents (Production)		2,740		5,751		-52	%
Total Worksite EE		25,111		26,952		-7	%
Annual Gross Billings (000's)	$	1,000,126		971,178		3	%
Annual Gross Billings / Avg Worksite EE	$	37,980		37,920		0	%
Note: for 4th qtr, the "% change" columns should be the change in the whole dollar amounts. We should link the columns to the DIS P/L going forward.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

 Quarterly

GAAP Investment Income (unaudited)

($ in thousands)

			For the three months ended						%			Year to Date									%
			December			December			Increase			December			December			Increase			Increase
			2007			2006			(Decrease)			2007			2006			(Decrease)			(Decrease)
Investment Income:
	Interest:
		Fixed Maturity Securities	$	36,665			33,866			8.3		$	140,383			128,771			11,612			9.0
		Short-term		2,369			2,692			(12.0	)		8,563			7,806			757			9.7
	Other Investments
		Alternative Investments		6,361			2,668			138.4			19,201			12,244			6,957			56.8
		Other		2,391			1,336			79.0			2,391			1,294			1,097			84.8
	Dividends			3,619			5,479			(33.9	)		8,626			9,898			(1,272	)		(12.9	)
	Miscellaneous			77			66			16.7			236			208			28			13.5
				51,482			46,107			11.7			179,400			160,221			19,179			12.0
Investment Expense				1,517			1,588			(4.5	)		5,256			3,419			1,837			53.7
Net Investment Income Before Tax				49,965			44,519			12.2			174,144			156,802			17,342			11.1
Tax				12,650			10,414			21.5			40,475			35,342			5,133			14.5
Net Investment Income After Tax			$	37,315			34,105			9.4		$	133,669			121,460			12,209			10.1
Net Investment Income per Share				0.68			0.56			21.4			2.34			1.94			0.40			20.6
Effective Tax Rate				25.3	%		23.4	%					23.2	%		22.5	%		0.7			3.1
Average Yield:
	Pre Tax												4.8	%		4.6	%		0.2
	After Tax												3.6	%		3.6	%		-
			For the three months ended									Year to Date									%
			December			December						December			December			Increase			Increase
Net Realized Gains (Losses)			2007			2006						2007			2006			(Decrease)			(Decrease)
	Fixed Maturities			(5,063	)		338						(6,705	)		(4,281	)		(2,424	)		(56.6	)
	Equity Securities			11,212			9,339						40,895			39,760			1,135			2.9
	Other Investments			-			-						(836	)		-			(836	)		n/a
	Total			6,149			9,677						33,354			35,479			(2,125	)		(6.0	)
	Net of Tax			3,997			6,291						21,680			23,062			(1,382	)		(6.0	)

Selective Insurance Group, Inc.

Consolidated Balance Sheets

(in thousands, except share amounts)
	Unaudited			Unaudited
ASSETS	December 31,			December 31,
Investments:	2007			2006
Fixed maturity securities, held-to-maturity - at amortized cost
(fair value of: $5,927-2007; $10,073-2006)	$	5,783			9,822
Fixed maturity securities, available-for-sale - at fair value
(amortized cost of: $3,049,913-2007; $2,916,884-2006)		3,073,547			2,937,100
Equity securities, available-for-sale - at fair value
(cost of: $160,390-2007; $157,864-2006)		274,705			307,376
Short-term investments - (at cost which approximates fair value)		190,167			197,019
Other investments		188,827			144,785
Total investments		3,733,029			3,596,102
Cash and cash equivalents		8,383			6,443
Interest and dividends due or accrued		36,141			34,846
Premiums receivable, net of allowance for uncollectible accounts of:
$3,905-2007; $3,229-2006		496,363			458,452
Other trade receivables, net of allowance for uncollectible accounts of:
$244-2007; $255-2006		21,875			21,388
Reinsurance recoverable on paid losses and loss expenses		7,429			4,693
Reinsurance recoverable on unpaid losses and loss expenses		227,801			199,738
Prepaid reinsurance premiums		82,182			69,935
Current federal income tax		4,235			468
Deferred federal income tax		22,375			15,445
Property and equipment - at cost,
net of accumulated depr and amort of: $117,832-2007; $103,660-2006		58,561			59,004
Deferred policy acquisition costs		226,434			218,103
Goodwill		33,637			33,637
Other assets		43,547			49,451
Total assets	$	5,001,992			4,767,705
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Reserve for losses	$	2,182,572			1,959,485
Reserve for loss expenses		359,975			329,285
Unearned premiums		841,348			791,540
Senior convertible notes		8,740			57,413
Notes payable		286,151			304,424
Commissions payable		60,178			54,814
Accrued salaries and benefits		88,079			94,560
Other liabilities		98,906			98,957
Total liabilities		3,925,949			3,690,478
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: 94,652,930-2007; 91,562,266-2006		189,306			183,124
Additional paid-in capital		192,627			153,246
Retained earnings		1,105,946			986,017
Accumulated other comprehensive income		86,043			100,601
Treasury stock - at cost (shares: 40,347,894-2007; 34,289,974-2006)		(497,879	)		(345,761	)
Total stockholders' equity		1,076,043			1,077,227
Total liabilities and stockholders' equity	$	5,001,992			4,767,705

Selective Insurance Group, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)	Unaudited				Unaudited
	Three Months ended				Twelve Months ended
	December 31,				December 31,
	2007		2006		2007			2006
Revenues:
Net premiums written	$	323,236		306,925		1,554,867			1,535,961
Net increase in unearned premiums and
prepaid reinsurance premiums		59,446		70,255		(37,561	)		(36,297	)
Net premiums earned		382,682		377,180		1,517,306			1,499,664
Net investment income earned		49,965		44,519		174,144			156,802
Net realized gains		6,149		9,677		33,354			35,479
Diversified insurance services revenue		26,380		26,415		115,566			110,526
Other income		1,435		1,163		5,858			5,396
Total revenues		466,611		458,954		1,846,228			1,807,867
Expenses:
Losses incurred		213,289		202,377		829,524			791,955
Loss expenses incurred		41,629		41,290		169,682			168,028
Policy acquisition costs		123,980		120,559		497,229			478,339
Dividends to policyholders		3,253		1,853		7,202			5,927
Interest expense		5,640		6,369		23,795			21,411
Diversified insurance services expenses		22,854		22,277		96,943			92,718
Other expenses		6,908		5,974		29,095			28,979
Total expenses		417,553		400,699		1,653,470			1,587,357
Income before federal income tax		49,058		58,255		192,758			220,510
Federal income tax expense (benefit):
Current		12,475		13,873		43,046			66,717
Deferred		343		839		3,214			(9,781	)
Total federal income tax expense		12,818		14,712		46,260			56,936
Net income	$	36,240		43,543		146,498			163,574
Earnings per share:
Basic net income	$	0.70		0.79		2.80			2.98
Diluted net income	$	0.67		0.72		2.59			2.65
Dividends to stockholders	$	0.13		0.11		0.49			0.44

            Selective Insurance Group, Inc.

Consolidated Statements of Stockholders' Equity

	Unaudited					Unaudited
	Twelve Months Ended					Twelve Months Ended
(in thousands, except per share amounts)	December 31,					December 31,
	2007					2006
Common stock:
Beginning of year	$	183,124					173,085
Dividend reinvestment plan
(shares: 78,762 - 2007; 64,072 - 2006)		158					128
Convertible debentures
(shares: 2,074,067 - 2007; 3,999,128 - 2006)		4,148					7,998
Stock purchase and compensation plans
(shares: 937,835 - 2007; 956,520 - 2006)		1,876					1,913
End of year		189,306					183,124
Additional paid-in capital:
Beginning of year		153,246					71,638
Dividend reinvestment plan		1,708					1,604
Convertible debentures		9,806					51,249
Stock purchase and compensation plans		27,867					28,755
End of year		192,627					153,246
Retained earnings:
Beginning of year		986,017					847,687
Net income		146,498		146,498			163,574		163,574
Dividends to stockholders ($ 0.49 per share - 2007;
$0.44 per share - 2006)		(26,569	)				(25,244	)
End of year		1,105,946					986,017
Accumulated other comprehensive income:
Beginning of year		100,601					118,121
Other comprehensive (loss) income:
Decrease in unrealized gains on investment securities, net of deferred
income tax effect of $(10,925) - 2007; $(2,031) - 2006		(20,289	)	(20,289	)		(3,772	)	(3,772	)
Defined benefit pension plans, net of deferred
income tax effect of $3,086 - 2007; $(7,403) - 2006		5,731		5,731			(13,748	)	-
End of year		86,043					100,601
Comprehensive income				131,940					159,802
Treasury stock:
Beginning of year		(345,761	)				(229,407	)
Acquisition of treasury stock
(shares:  6,057,920 - 2007; 4,335,622 - 2006)		(152,118	)				(116,354	)
End of year		(497,879	)				(345,761	)
Total stockholders' equity	$	1,076,043					1,077,227

Selective Insurance Group, Inc.
Consolidated Statements of Cash Flows
Years ended December 31,	(unaudited)	(unaudited)
(in thousands)	2007	2006

Operating Activities
Net income	$	146,498	163,574
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		29,139	25,684
Stock compensation expense		20,992	14,524
Net realized gains		(33,354)	(35,479)
Deferred tax		3,214	(9,781)
Loss on disposition of discontinued operations		-	-
Debt conversion inducement		-	2,117
Cumulative effect of change in accounting principle, net of tax		-	-
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverable
on unpaid losses and loss expenses		227,749	223,231
Increase in unearned premiums, net of prepaid reinsurance and advance premiums		38,346	35,708
(Decrease) increase in net federal income tax payable		(3,767)	(2,761)
Increase in premiums receivable		(37,911)	(11,232)
Increase in other trade receivables		(487)	(4,835)
Increase in deferred policy acquisition costs		(8,331)	(13,271)
Increase in interest and dividends due or accrued		(1,331)	(2,280)
(Increase) decrease in reinsurance recoverable on paid losses and loss expenses		(2,736)	(144)
(Decrease) increase in accrued salaries and benefits		(3,266)	5,385
Increase (decrease) in accrued insurance expenses		6,370	(1,566)
Other, net		5,163	4,181
Net adjustments		239,790	229,481
Net cash provided by operating activities		386,288	393,055
Investing Activities
Purchase of fixed maturity securities, available-for-sale		(580,864)	(801,647)
Purchase of equity securities, available-for-sale		(148,569)	(52,429)
Purchase of other investments		(80,147)	(71,486)
Purchase of short-term investments		(2,198,362)	(2,290,937)
Net proceeds from sale of subsidiary		-	376
Sale of fixed maturity securities, available-for-sale		102,613	306,044
Sale of short-term investments		2,205,194	2,279,055
Redemption and maturities of fixed maturity securities, held-to-maturity		4,051	3,635
Redemption and maturities of fixed maturity securities, available-for-sale		319,118	187,608
Sale of equity securities, available-for-sale		187,259	108,382
Proceeds from other investments		40,115	8,350
Purchase of property and equipment		(14,511)	(18,670)
Net cash used in investing activities		(164,103)	(341,719)
Financing Activities
Dividends to stockholders		(24,464)	(22,831)
Acquisition of treasury stock		(152,118)	(116,354)
Proceeds from issuance of notes payable, net of issuance costs		-	96,263
Principal payments of notes payable		(18,300)	(18,300)
Net proceeds from stock purchase and compensation plans		8,609	11,560
Excess tax benefits from share-based payment arrangements		3,484	3,903
Borrowings under line of credit agreement		6,000	-
Repayment of borrowings under line of credit agreement		(6,000)	-
Debt conversion inducement		-	(2,117)
Principal payments of senior convertible notes		(37,456)	-
Proceeds received on notes receivable from stock sales		-	-
Net cash (used in) provided by financing activities		(220,245)	(47,876)
Net increase in cash and cash equivalents		1,940	3,460
Cash and cash equivalents, beginning of year		6,443	2,983
Cash and cash equivalents, end of year	$	8,383	6,443

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Balance Sheets
($ in thousands)
	Dec-31			Dec-31
	2007			2006
ASSETS
Bonds	$	3,041,373			2,869,024
Common stocks		297,102			330,470
Preferred stocks		-			10,000
Other investments		188,827			144,874
Short-term investments		125,650			81,663
Total investments		3,652,952			3,436,031
Cash on hand and in banks		(33,209	)		(25,466	)
Interest and dividends due and accrued		36,057			34,380
Premiums receivable		487,037			452,805
Reinsurance recoverable on paid losses and expenses		7,429			5,165
Deferred tax recoverable		87,951			77,799
EDP equipment		4,691			3,292
Equities and deposits in pools and associations		10,411			10,277
Receivable for sold securities		167			7,599
Other assets		32,105			27,514
Total assets	$	4,285,591			4,029,396
LIABILITIES
Reserve for losses	$	1,953,960			1,759,151
Reinsurance payable on paid loss and loss expense		1,310			370
Reserve for loss expenses		358,126			324,861
Unearned premiums		754,895			721,599
Reserve for commissions payable		60,178			54,814
Ceded balances payable		8,192			6,388
Federal income tax payable		14,084			13,949
Premium and other taxes payable		24,982			23,976
Reserve for dividends to policyholders		5,651			4,220
Reserves for unauthorized reinsurance		1,258			1,570
Payable for securities		-			13,704
Funds withheld on account of others		5,070			5,005
Accrued salaries and benefits		48,582			47,110
Other liabilities		15,009			22,601
Total liabilities		3,251,297			2,999,318
POLICYHOLDERS' SURPLUS
Capital		28,325			28,325
Paid in surplus		235,792			235,792
Unassigned surplus		770,177			765,961
Total policyholders' surplus		1,034,294			1,030,078
Total liabilities and policyholders' surplus	$	4,285,591			4,029,396

Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Unaudited Statutory Statements Of Income
($ in thousands)
	Three Months Ended													Twelve Months Ended
	December													December
UNDERWRITING	2007					2006					2007						2006
Net premiums written	$	321,038					308,402					1,558,457						1,540,901
Net premiums earned		384,772					378,673					1,525,163						1,504,632
Net losses paid		151,857					172,924					635,173						613,732
Change in reserve for losses		61,553					28,986					194,809						178,852
Net losses incurred		213,410		55.5	%		201,910		53.3	%		829,982			54.4	%		792,584		52.7	%
Net loss expenses paid		36,233					31,516					133,983						123,358
Change in reserve for loss expenses		5,085					9,485					33,265						42,799
Net loss expenses incurred		41,318		10.7	%		41,001		10.8	%		167,248			11.0	%		166,157		11.0	%
Net underwriting expenses incurred		113,795		35.1	%		106,491		34.6	%		497,946			31.8	%		484,599		31.4	%
Total deductions		368,523					349,402					1,495,176						1,443,340
Statutory gain		16,249					29,271					29,987						61,292
Net loss from premium balances charged off		(880	)				(673	)				(2,831	)					(3,508	)
Finance charges and other income		1,437					1,165					5,833						5,450
Total other income		557		-0.2	%		492		-0.2	%		3,002			-0.2	%		1,942		-0.1	%
Policyholders' dividends incurred		(3,253	)	0.8	%		(1,853	)	0.5	%		(7,202	)		0.5	%		(5,927	)	0.4	%
Total underwriting gain		13,553		101.9	%		27,910		99.0	%		25,787			97.5	%		57,307		95.4	%
INVESTMENT
Net investment income earned		48,237					43,179					166,327						149,131
Net realized gain		6,148					9,677					33,359						35,643
Total income before income tax		67,938					80,766					225,473						242,081
Federal income tax expense		18,022					17,883					57,851						77,860
Net income	$	49,916					62,883					167,622						164,221
Policyholders' Surplus
Surplus, beginning of period	$	1,071,166					985,802					1,030,078						930,577
Net income		49,916					62,883					167,622						164,221
Change in deferred tax		(1,669	)				(4,445	)				1,047						12,993
Change in unrealized (losses) gains		(13,433	)				6,601					(20,288	)					1,626
Dividends to stockholders		(63,637	)				(24,000	)				(139,649	)					(109,099	)
Paid in surplus		-					-					-						32,100
Change in reserve for unauthorized		312					3,111					312						3,111
Change in non-admitted assets		(8,190	)				140					(11,542	)					(4,889	)
Surplus adjustments		(171	)				(14	)				6,714						(562	)
Net change in surplus for period		(36,872	)				44,276					4,216						99,501
Surplus, end of period	$	1,034,294					1,030,078					1,034,294						1,030,078
Statutory underwriting gain (loss):	$	13,553					27,910					25,787						57,307
Adjustments under GAAP:
Deferred policy acquisition costs		(8,725	)				(13,180	)				8,331						13,271
Flood income reclassification		(1,884	)				(1,913	)				(10,386	)					(10,193	)
Other, net		(1,680	)				(1,354	)				(7,775	)					(2,407	)
GAAP underwriting gain (loss)	$	1,264					11,463					15,957						57,978
Note: Some amounts or ratios may not foot due to rounding.
Certain amounts have been reclassified to comform to the current year's presentation.

Selective Insurance Group, Inc. and its Subsidiaries

Municipal Fixed Income Portfolio (as of December 31, 2007)

Highlights

●   The overall credit quality* of our $1.6 billion municipal fixed income portfolio is:

o   “AA+” including insurance enhancement

o   “AA” excluding insurance enhancement

▪  95% of the underlying ratings are “A-” or better

▪  76% of the underlying ratings are “AA-” or better

●  The municipal fixed income portfolio with insurance enhancement represents $862 million, or 53% of the total municipal fixed income portfolio

o   The average credit quality with insurance enhancement is “AAA”

o   The average credit quality without insurance enhancement is “AA-”

o   Credit analysis is performed on every municipal fixed income investment, irrespective of credit enhancement provided by bond insurers

●  The municipal fixed income portfolio without insurance enhancement represents $755 million, or 47% of the total municipal fixed income portfolio

o   Average credit quality is “AA+”

●   Based on our analysis of the composition of our municipal fixed income portfolio within context of the market conditions existing today, we believe that the ultimate impact on our municipal fixed income portfolio would not be material if monoline insurers ceased to exist.  Our belief is based on the following assumptions:

o   The inherent strength of the underlying credit quality of the municipal fixed income securities in our portfolio

o   The yield spread differences between “AAA” rated municipal fixed income securities and “AA” rated municipal fixed income securities in our portfolio remain marginal

o   The historically low default rates of high grade municipal fixed income securities

*Credit quality is based on weighted average Standard & Poor’s (S&P) ratings or equivalent when the S&P rating is not available.

Selective Insurance Group, Inc. and its Subsidiaries

Municipal Fixed Income Portfolio as of December 31, 2007

($ in millions)

	Average	Market	% of Total	Unrealized
	Credit Rating	Value	Muni Portfolio	Gain
Uninsured Securities	AA+	755	47%	7
Securities with Insurance Enhanced1	AAA	862	53%	11
Without Insurance Enhancement	AA-
Total		$1,617	100%	$           18

1 Includes $32.9 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.

Selective Insurance Group, Inc. and its Subsidiaries
Ratings on Municipal Fixed Income Portfolio as of December 31, 2007
($ in millions)
	Uninsured Securities		Insurance Enhanced Securities1		Underlying Rating of Insurance Enhanced Securities1		Total Municipal Fixed Income Portfolio (with Insurance Enhancement)		Total Municipal Fixed Income Portfolio (without Insurance 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	330	44%	861	100%	45	5%	1,191	74%	375	23%
AA+	177	23%	-	0%	103	12%	177	11%	280	17%
AA	138	18%	1	0%	138	16%	139	9%	276	17%
AA-	66	9%	-	0%	234	27%	66	4%	300	19%
A+	28	4%	-	0%	134	16%	28	2%	162	10%
A	-	0%	-	0%	102	11%	-	0%	102	6%
A-	2	0%	-	0%	54	6%	2	0%	56	3%
BBB+	4	1%	-	0%	14	2%	4	0%	18	1%
BBB	2	0%	-	0%	-	0%	2	0%	2	0%
BBB-	8	1%	-	0%	38	4%	8	0%	46	3%
Total	755	100%	862	100%	862	100%	1,617	100%	1,617	100%
Average Rating:		AA+		AAA		AA-		AA+		AA

1 Includes $32.9 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.

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Insurance Enhanced Asset Backed Securities by Insurer and Rating

As of 12/31/07

Unaudited

(in $000s)
	Book Value as of 12/31/07

Underlying Composite Rating  AMBAC  FGIC  FSA  MBIA  RADIAN  XLCA  Total % of Total Bond Portfolio

AAA	14,640	6,194	23,312	250	-	-	44,395	1%
AA+	11,153	15,273	60,326	14,712	-	-	101,464	3%
AA	32,218	23,032	35,751	45,416	-	-	136,417	4%
AA-	14,681	47,718	69,686	98,109	-	-	230,194	8%
A+	8,237	35,681	26,576	58,134	-	3,886	132,514	4%
A	30,852	15,135	21,108	34,430	-	-	101,526	3%
A-	9,625	8,749	15,675	19,437	-	-	53,485	2%
BBB+	3,260	-	-	10,740	-	-	14,000	0%
BBB-	-	2,908	-	2,141	-	-	5,049	0%
N.A.	5,880	5,312	2,120	18,172	1,267	-	32,751	1%
Total	130,547	160,002	254,554	301,539	1,267	3,886	851,795	28%

	Market Value as of 12/31/07
Underlying Composite Rating	AMBAC	FGIC	FSA	MBIA	RADIAN	XLCA	Total	% of Total Bond Portfolio
AAA	14,850	6,416	23,476	253	-	-	44,995	% of Total Bond Portfolio
AA+	11,461	15,394	61,062	14,791	-	-	102,707	3%
AA	32,427	23,592	36,297	46,027	-	-	138,343	4%
AA-	14,834	47,988	71,287	99,724	-	-	233,833	8%
A+	8,139	36,093	26,906	58,945	-	3,864	133,947	4%
A	30,959	15,328	21,182	34,552	-	-	102,021	3%
A-	9,771	9,000	15,875	19,654	-	-	54,300	2%
BBB+	3,281	-	-	11,005	-	-	14,286	0%
BBB-	-	2,907	-	2,151	-	-	5,058	0%
N.A.	5,892	5,392	2,111	18,267	1,265	-	32,927	1%
Total	131,613	162,110	258,196	305,369	1,265	3,864	862,417	27%

	Unrealized Gains/(Losses) as of 12/31/07
Underlying Composite Rating	AMBAC	FGIC	FSA	MBIA	RADIAN	XLCA	Total
AAA	210	222	165	3	-	-	599
AA+	307	121	736	79	-	-	1,243
AA	209	561	546	611	-	-	1,926
AA-	152	270	1,601	1,616	-	-	3,639
A+	(97)	412	329	811	-	(22)	1,434
A	106	193	74	122	-	-	496
A-	146	251	200	217	-	-	815
BBB+	20	-	-	266	-	-	286
BBB-	-	(1)	-	11	-	-	9
N.A.	12	79	(9)	94	(1)	-	176
Total	1,066	2,108	3,643	3,830	(1)	(22)	10,622

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Insurance Enhanced Asset Backed Securities by Insurer and Rating

As of 12/31/07

Unaudited

Unaudited
(in $000s)
	Book Value as of 12/31/07
Underlying Composite Rating	AMBAC	CIFG	FGIC	MBIA	Total	% of Total Bond Portfolio
N.A.	10,356	9,457	8,260	9,240	37,313	1%
Total	10,356	9,457	8,260	9,240	37,313	1%

	Market Value as of 12/31/07
Underlying Composite Rating	AMBAC	CIFG	FGIC	MBIA	Total	% of Total Bond Portfolio
N.A.	10,431	8,921	7,537	8,689	35,578	1%
Total	10,431	8,921	7,537	8,689	35,578	1%

	Unrealized Gains/(Losses) as of 12/31/07
Underlying Composite Rating	AMBAC	CIFG	FGIC	MBIA	Total
N.A.	75	(536)	(723)	(551)	(1,735)
Total	75	(536)	(723)	(551)	(1,735)

Selective Insurance Group, Inc. and Consolidated Subsidiaries

As of December 31, 2007

(in 000's)

(Unaudited)

Residential Mortgage Backed Securities (RMBS) and Residential ABS -Book Value

RMBS Type	AAA	AAA  Insured	AA	A	BBB	Total	% of Total Bond Portfolio
Agency	203,612	-	-	-	-	203,612	7%
FHA/VA	16,024	-	-	-	-	16,024	1%
Total Agency	219,636	-	-	-	-	219,636	8%
Alt-A	85,312	-	-	-	-	85,312	3%
CDO	-	9,457	-	-	-	9,457	0%
Home Equity ABS	-	8,681	-	-	-	8,681	0%
Non-Agency & Other Prime	101,113	-	14,224	4,634	1,310	121,281	4%
Total RMBS & RABS-Book Value	406,061	18,138	14,224	4,634	1,310	444,367	15%
% of Total RMBS & RABS	92%	4%	3%	1%	0%	100%

Residential Mortgage Backed Securities (RMBS) and Residential ABS -Market Value

RMBS Type	AAA	AAA  Insured	AA	A	BBB	Total	% of Total Bond Portfolio
Agency	205,883	-	-	-	-	205,883	7%
FHA/VA	15,902	-	-	-	-	15,902	0%
Total Agency	221,785	-	-	-	-	221,785	7%
Alt-A	82,644	-	-	-	-	82,644	3%
CDO	-	8,922	-	-	-	8,922	0%
Home Equity ABS	-	7,912	-	-	-	7,912	0%
Non-Agency & Other Prime	100,643	-	13,038	4,519	1,144	119,344	4%
Total RMBS & RABS-Market Value	405,072	16,834	13,038	4,519	1,144	440,607	14%
% of Total RMBS & RABS	92%	4%	3%	1%	0%	100%

Unrealized gains/(losses)
RMBS Type	AAA	AAA  Insured	AA	A	BBB	Total
Agency	2,271	-	-	-	-	2,271
FHA/VA	(122)	-	-	-	-	(122)
Total Agency	2,149	-	-	-	-	2,149
Alt-A	(2,668)	-	-	-	-	(2,668)
CDO	-	(535)	-	-	-	(535)
Home Equity ABS	-	(769)	-	-	-	(769)
Non-Agency & Other Prime	(470)	-	(1,186)	(115)	(166)	(1,937)
Total RMBS & RABS-Market Value	(989)	(1,304)	(1,186)	(115)	(166)	(3,760)
% of Total RMBS & RABS	26%	35%	32%	3%	4%	100%

Selective Insurance Group, Inc. and Consolidated Subsidiaries
As of December 31, 2007
(in 000's)
(Unaudited)
CMBS by Vintage Year - Book Value
Vintage Yr	AAA	AAA  Insured	AA	A	BBB	BB	Total	Type % of Total
1996	5,256	-	-	-	-	-	5,256	2%
1998	1,607	-	-	-	-	-	1,607	0%
1999	22,712	5,348	-	-	-	-	28,060	10%
2000	34,516	-	-	-	-	-	34,516	12%
2001	36,894	-	-	-	-	-	36,894	13%
2002	49,749	-	-	-	-	-	49,749	17%
2003	2,006	-	-	-	-	-	2,006	0%
2004	9,500	-	5,000	-	-	-	14,500	5%
2005	12,524	-	4,845	-	4,796	-	22,165	8%
2006	26,732	-	10,385	3,000	-	-	40,117	14%
2007	29,419	-	7,054	2,000	10,630	5,000	54,103	19%
Total CMBS-Book Value	230,915	5,348	27,284	5,000	15,426	5,000	288,973	100%
% of Total CMBS	80%	2%	9%	2%	5%	2%	100%
CMBS by Vintage Year - Market Value
Vintage Yr	AAA	AAA  Insured	AA	A	BBB	BB	Total	Type % of Total
1996	5,238	-	-	-	-	-	5,238	2%
1998	1,609	-	-	-	-	-	1,609	0%
1999	23,374	5,557	-	-	-	-	28,931	10%
2000	36,080	-	-	-	-	-	36,080	13%
2001	38,508	-	-	-	-	-	38,508	14%
2002	50,808	-	-	-	-	-	50,808	18%
2003	2,028	-	-	-	-	-	2,028	0%
2004	9,665	-	4,900	-	-	-	14,565	5%
2005	10,922	-	4,821	-	4,135	-	19,878	7%
2006	24,507	-	8,758	2,902	-	-	36,167	13%
2007	29,529	-	6,646	1,883	7,845	4,700	50,603	18%
Total CMBS-Market Value	232,268	5,557	25,125	4,785	11,980	4,700	284,415	100%
% of Total CMBS	82%	2%	8%	2%	4%	2%	100%

CMBS by Vintage Year - Unrealized Gain/(Loss)
Vintage Yr	AAA	AAA  Insured	AA	A	BBB	BB	Total
1996	(18)	-	-	-	-	-	(18)
1998	2	-	-	-	-	-	2
1999	662	209	-	-	-	-	871
2000	1,564	-	-	-	-	-	1,564
2001	1,614	-	-	-	-	-	1,614
2002	1,059	-	-	-	-	-	1,059
2003	22	-	-	-	-	-	22
2004	165	-	(100)	-	-	-	65
2005	(1,602)	-	(24)	-	(661)	-	(2,287)
2006	(2,225)	-	(1,627)	(98)	-	-	(3,950)
2007	110	-	(408)	(117)	(2,785)	(300)	(3,500)
Total CMBS-Market Value	1,353	209	(2,159)	(215)	(3,446)	(300)	(4,558)
% of Total CMBS	-30%	-5%	47%	5%	76%	7%	100%

Selective Insurance Group, Inc. and Consolidated Subsidiaries

As of December 31, 2007

(in 000's)

(Unaudited)

CMBS by Type - Book Value

CMBS Type	AAA	AAA  Insured	AA	A	BBB	BB	Total	Type % of Total
Agency MultiFamily	48,987	-	-	-	-	-	48,987	17%
Cell Tower	-	-	19,845	5,000	-	-	24,845	9%
Conduit	28,653	-	-	-	-	-	28,653	10%
Fusion	118,945	-	4,054	-	13,426	-	136,425	47%
Lease-Backed	-	5,348	-	-	-	-	5,348	2%
Re-Securitization	26,256	-	3,385	-	-	-	29,641	10%
Single Borrower - Multiple Properties	5,074	-	-	-	2,000	5,000	12,074	4%
Timberland	3,000	-	-	-	-	-	3,000	1%
Total CMBS-Book Value	230,915	5,348	27,284	5,000	15,426	5,000	288,973	100%
% of Total CMBS	80%	2%	9%	2%	5%	2%	100%

CMBS by Type - Market Value

CMBS Type	AAA	AAA  Insured	AA	A	BBB	BB	Total	Type % of Total
Agency MultiFamily	50,181	-	-	-	-	-	50,181	17%
Cell Tower	-	-	19,548	4,785	-	-	24,333	9%
Conduit	29,452	-	-	-	-	-	29,452	10%
Fusion	121,875	-	3,770	-	10,149	-	135,794	48%
Lease-Backed	-	5,557	-	-	-	-	5,557	2%
Re-Securitization	22,541	-	1,807	-	-	-	24,348	9%
Single Borrower - Multiple Properties	5,306	-	-	-	1,831	4,700	11,837	4%
Timberland	2,913	-	-	-	-	-	2,913	1%
Total CMBS-Market Value	232,268	5,557	25,125	4,785	11,980	4,700	284,415	100%
% of Total CMBS	82%	2%	8%	2%	4%	2%	100%

CMBS Unrealized gains/(losses) by type

CMBS Type	AAA	AAA   Insured	AA	A	BBB	BB	Total
Agency MultiFamily	1,194	-	-	-	-	-	1,194
Cell Tower	-	-	(297)	(215)	-	-	(512)
Conduit	799	-	-	-	-	-	799
Fusion	2,930	-	(284)	-	(3,277)	-	(631)
Lease-Backed	-	209	-	-	-	-	209
Re-Securitization	(3,715)	-	(1,578)	-	-	-	(5,293)
Single Borrower - Multiple Properties	232	-	-	-	(169)	(300)	(237)
Timberland	(87)	-	-	-	-	-	(87)
Total CMBS-Market Value	1,353	209	(2,159)	(215)	(3,446)	(300)	(4,558)