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 24, 2008
SELECTIVE INSURANCE GROUP, INC.
(Exact name of registrant as specified in its charter)
New Jersey	0-8641	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:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

o 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 24, 2008, Selective Insurance Group, Inc. (the “Company”) issued a press release announcing results for the first quarter ended March 31, 2008.  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 24, 2008
	99.2	Supplemental Investor Package, First Quarter 2008

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 24, 2008	By:	/s/ Michael H. Lanza
		Michael H. Lanza
		Executive Vice President, General Counsel
		& Corporate Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of Selective Insurance Group, Inc. dated April 24, 2008
99.2	Supplemental Investor Package, First Quarter 2008

EX-99.1

Exhibit 99.1

Selective Insurance Group, Inc.

40 Wantage Avenue

Branchville, New Jersey 07890

www.selective.com

For release at 4:15 p.m. (ET) on April 24, 2008

Media Contact: Sharon Cooper

973-948-1324, sharon.cooper@selective.com

Investor Contact: Jennifer DiBerardino

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

Selective Insurance Group Reports

First Quarter 2008 Earnings

Branchville, NJ – April 24, 2008 - Selective Insurance Group, Inc. (NASDAQ: SIGI), today reported its financial results for the first quarter ended March 31, 2008.

Selective Chairman, President and CEO Gregory E. Murphy stated, “Our first quarter results were reduced by several factors, some of an unusual nature, such as the restructuring charge announced in February, and lower investment income due to our higher short-term cash position taken to safeguard against significant financial market turmoil. Other factors included an effective tax rate variance, some volatility in our commercial lines, and the challenging commercial lines marketplace that limited new business growth. Together, these items contributed to operating income1 per diluted share of $0.36.

“We remain confident in our direction and strategic initiatives to successfully navigate and grow profitably in this soft market cycle, as we have previous cycles, based on our strong agency relationships, a superior field force, excellent technology and underwriting tools. We continued to take steps to position Selective to deal with the short-term effects of the difficult environment, including the restructuring and commission reductions announced last quarter that are expected to generate total annualized pre-tax savings of $14 million.”

Results for first quarter 2008, compared to first quarter 2007, included:

-   Net income of $20.5 million, or $0.38 per diluted share, compared to $37.3 million and $0.62 per diluted share:

§   After-tax net realized gains down $6.3 million, to $0.02 per diluted share, compared to $0.12 per diluted share; and

§   Operating income1of $19.5 million, or $0.36 per diluted share, compared to $29.9 million and $0.50 per diluted share, impacted by:

§  After-tax restructuring charge of $2.3 million, or $0.04 per diluted share;

§  Increased other expenses, largely from taxes of $1.4 million, or $0.03 per diluted share, booked in the first quarter based on the full-year tax rate (which will benefit future quarters in 2008);

§  Increased pressure on the commercial property and liability lines of approximately $5 million, after-tax, or $0.08 per diluted share; and

§  Lower investment income, primarily from the $1.2 million, after-tax, or $0.02 per diluted share, decline in market value of the Company’s externally managed trading portfolio.

-   Total net premiums written (NPW) of $389.8 million, compared to $417.2 million;

§  Commercial lines NPW of $340.1 million, compared to $370.3 million; and

§  Personal lines NPW of $49.8 million, compared to $46.9 million.

-   GAAP combined ratio of 100.4% vs. 97.4%; statutory combined ratio of 98.3% vs. 95.6%; and after-tax catastrophe losses flat at $3.1 million.

-   Investment Income, after-tax, of $29.4 million, compared to $31.2 million. 2008 investment income was also impacted by the Company’s decision to hold a larger average cash balance of $236 million due to the turmoil in the financial markets. Under normal circumstances, particularly with the current yield curve, the Company would have held approximately $90 million less cash, which lowered investment income by $0.8 million or $0.02 per diluted share.

Murphy added, “While new business in our commercial lines large account segment (primarily over $250,000 premium), was down 50% for the quarter, the small business One & Done segment, which is the least impacted by pricing pressures and where our predictive models provide the greatest advantage, grew 23%, as $271,000 in premium flowed through our automated underwriting systems daily. Although we did walk away from large accounts and certain workers compensation (WC) exposures that we believe our competitors significantly under-priced, we have focused our WC and safety management initiatives on retaining the best business, which aligns with what Selective’s agents are doing. As a result, overall commercial lines retention was solid at 78%, as we continued to hold onto accounts in a very tough market. In addition, renewal pricing, including exposure, was down only 0.4%, while pure price declined only 3%.”

Murphy said, “Selective’s combined ratio, excluding the restructuring charge, was up about two points this quarter, mainly due to volatility in our commercial automobile line that reflected increased severity, deteriorating pricing trends, and favorable prior year liability reserve development of $3 million in first quarter 2007 that was flat this quarter. Ongoing improvements in our WC and business owners’ policy (BOP) lines of business partially offset the increased pressure from the property and liability lines.

“All of our predictive models are now complete and being used to score business and price for profitability, an advantage in a deteriorating price environment,” Murphy concluded.

For the quarter, Diversified Insurance Services revenue grew 2%, including 16% growth in fee-based flood revenue.

At March 31, 2008, Selective’s assets reached $5.0 billion, including $3.7 billion in the company’s investment portfolio which retains an average rating of “AA+.”

During the quarter, the company repurchased 1.0 million shares of Selective’s outstanding common stock at an average price per share of $24.04 and price to book of 1.2. There are 2.5 million shares remaining under the current 4 million share reauthorization program. Selective’s Board of Directors declared a $0.13 per share quarterly cash dividend on Selective’s common stock, payable June 2, 2008 to stockholders of record on May 15, 2008.”

Murphy concluded, “Given the challenging first quarter, we have updated our 2008 earnings guidance from a range of $2.20 to $2.40 per diluted share, to a range of $2.00 to $2.30. Our full year guidance is based on the following assumptions: (i) a statutory combined ratio of approximately 98.5% and a GAAP combined ratio of approximately 100%; (ii) after-tax catastrophe losses of $14.4 million, or $0.27 per share; (iii) growth in after-tax investment income of 1%, including an 8% pre-tax yield on alternative investments; (iv) Diversified Insurance Services revenue growth of 5% and return on revenue of 10%; and (v) diluted weighted average shares of 52.5 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 25, 2008, at www.selective.com. The webcast will be available for rebroadcast until the close of business on May 23, 2008.

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. Other subsidiaries of the company provide claims, human resources and risk management services. Selective maintains a website at www.selective.com.

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. Such statements are “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995, which provides a safe harbor under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, for forward-looking statements. These forward-looking statements are often identified by 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 and their negatives. Selective and its management assume no obligation to update these forward-looking statements due to changes in underlying factors, new information, future developments or otherwise.

Selective and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in Selective’s future performance. Factors that could cause Selective’s actual results to differ materially from those indicated by such forward-looking statements, include, among other things, those discussed or identified from time to time in our public filings with the SEC and those associated with:

·   the frequency and severity of catastrophic events, including, but not limited to, hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, fires, explosions and terrorism;

·   adverse economic, market, regulatory, legal or judicial conditions;

·   the concentration of our business in a number of Eastern Region states;

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

·   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;

·   our ability to maintain favorable ratings from rating agencies, including A.M. Best, S&P, Moody’s and Fitch;

·   fluctuations in interest rates and the performance of the financial markets;

·   our entry into new markets and businesses; and

·   other risks and uncertainties we identify in filings with the SEC, including, but not limited to, our Annual Report on Form 10-K.

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).

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:	2008			2007
Net premiums written	$	389,840			417,185
Net premiums earned		381,273			380,013
Net investment income		37,866			39,863
Diversified insurance services revenue		29,799			29,178
Total revenues		451,113			462,109
Operating income		19,518			29,944
Capital gain, net of tax		985			7,308
Net income	$	20,503			37,252
Statutory combined ratio		98.3	%		95.6	%
GAAP combined ratio		100.4	%		97.4	%
Operating income per diluted share	$	0.36			0.50
Net income per diluted share		0.38			0.62
Weighted average diluted shares		53,882			60,372
Book value per share	$	19.62			18.94
*All amounts included in this release exclude inter-company transactions.

 ___________________________

1Operating income differs from net income by the exclusion of realized gains or losses on investment sales. It is used as an important financial measure by management, analysts and investors, because the realization of investment gains and losses in any given period is largely discretionary as to timing and could distort the analysis of trends; however, it is not intended as a substitute for net income prepared in accordance with accounting principles generally accepted in the United States of America (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.

###

EX-99.2

Exhibit 99.2

Supplemental Investor Package

First Quarter 2008

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)
		March 31,				March 31,				December 31,
		2008				2007				2007
		Balance	Market	Unrealized		Balance	Market	Unrealized		Balance	Market	Unrealized
		Sheet	Value	Gain/(Loss)		Sheet	Value	Gain		Sheet	Value	Gain/(Loss)
Invested Assets:
Corporate bonds	$	1,235,593	1,235,594	(26,588)	$	1,003,615	1,006,617	12,430	$	1,282,643	1,282,645	(910)
Gov't\ Municipal bonds		1,790,381	1,790,505	32,035		1,955,836	1,956,052	9,627		1,796,687	1,796,829	24,688
Total bonds		3,025,974	3,026,099	5,447		2,959,451	2,962,669	22,057		3,079,330	3,079,474	23,778
Equities		232,787	232,787	85,613		310,534	310,534	141,541		274,705	274,705	114,315
Short-term investments		212,545	212,545	-		156,899	156,899	-		190,167	190,167	-
Trading securities		23,219	23,219	5,861		-	-	-		-	-	-
Other investments		197,097	197,097	26,109		165,131	165,131	28,497		188,827	188,827	30,647
Total invested assets		3,691,622	3,691,747	123,030		3,592,015	3,595,233	192,095		3,733,029	3,733,173	168,740
Total assets		4,970,486				4,802,465				5,001,992
Liabilities:
Reserve for losses		2,199,024				2,013,230				2,182,572
Reserve for loss expenses		368,274				339,270				359,975
Unearned premium reserve		850,494				829,369				841,348
Total liabilities		3,924,794				3,763,601				3,925,949
Stockholders' equity		1,045,692				1,038,864				1,076,043
Total debt to capitalization ratio		21.5%				25.9%				21.5%
Adjusted total debt to capitalization ratio *		15.0%				18.7%				15.2%
Book value per share		19.62				18.94				19.81
Book value per share excluding
FAS 115 unrealized gain or loss on bond portfolio		19.55				18.68				19.53
NPW per insurance segment employee		823				800				797
Statutory premiums to surplus ratio		1.5x				1.5x				1.5x
Statutory surplus		1,016,282				1,040,675				1,034,294

_____________

*   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.

1

Selective Insurance Group, Inc.
Selected Income Statement Data (unaudited)
March 31, 2008			THREE MONTHS ENDED MARCH 31,
($ in thousands, except per share amounts)			2008			2007
				Per diluted share			Per diluted share
Consolidated
	Revenue	$	451,113		$	462,109
	Operating income		19,518	0.36		29,944	0.50
	Net realized gains, after tax		985	0.02		7,308	0.12
	Net Income		20,503	0.38		37,252	0.62
	Operating return on equity		7.4%			11.3%
Insurance Operations
	Gross premiums written		440,045			460,963
	Net premiums written		389,840			417,185
	Net premiums earned		381,273			380,013
	Underwriting (loss) profit - before tax		(1,452)			9,717
	- after tax		(944)	(0.02)		6,316	0.10
	GAAP combined ratio		100.4%			97.4%
Commercial lines
	Net premiums earned		329,977			329,011
	GAAP combined ratio		98.7%			96.2%
Personal lines
	Net premiums earned		51,296			51,002
	GAAP combined ratio		111.4%			105.7%
Diversified Insurance Services
	Revenue		29,799			29,178
	Income  - after tax		2,813	0.05		2,906	0.05
	Return on revenue		9.4%			10.0%
Investments
	Net investment income - before tax		37,866			39,863
	- after tax		29,371	0.55		31,157	0.52
	Effective tax rate		22.4%			21.8%
	Annual after-tax yield on investment portfolio		3.2%			3.5%
	Annual after-tax, after-interest expense yield		2.8%			3.0%
	Invested assets per $ of stockholders' equity		3.53			3.46
Other expenses (net of other income)
	Interest expense - before tax		(5,309)			(6,331)
	Actual interest expense - after tax		(3,451)			(4,115)
	Interest expense addback for dilution - after tax		-			406
	Adjusted interest expense - after tax		(3,451)	(0.06)		(3,709)	(0.06)
	Other - after tax	$	(8,271)	(0.16)	$	(6,317)	(0.11)
Diluted weighted avg shares outstanding			53,882			60,372

2

Selective Insurance Group, Inc.
2008 Statutory Results by Line of Business
Three Months Ended March 31, 2008 (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			2008			2007			Gain/(Loss)
Personal Lines:
Homeowners	$	14,108		10.2	%	$	16,571		9.4	%		63.2	%		8.4	%		40.2	%		0.0	%		111.8	%		122.4	%	$	(958	)
Auto		33,575		3.9	%		32,605		(3.9	)%		67.4	%		14.9	%		31.1	%		0.0	%		113.4	%		101.7	%		(4,672	)
Other (including flood)		2,071		13.7	%		2,119		10.2	%		50.6	%		3.8	%		(53.3	)%		0.0	%		1.1	%		62.7	%		2,071
Total	$	49,754		6.0	%	$	51,296		0.6	%		65.3	%		12.3	%		30.2	%		0.0	%		107.8	%		106.0	%	$	(3,560	)
Commercial Lines:
Fire/IM	$	48,244		(5.5	)%	$	49,936		7.2	%		51.4	%		4.5	%		40.1	%		0.6	%		96.6	%		92.1	%	$	2,358
Workers' compensation		80,300		(14.3	)%		78,466		(4.9	)%		56.4	%		11.6	%		26.0	%		0.5	%		94.5	%		98.2	%		3,846
General liability		111,283		(6.2	)%		103,269		(0.2	)%		48.4	%		16.2	%		32.7	%		(0.2	)%		97.1	%		95.0	%		337
Auto		80,198		(8.6	)%		79,224		0.6	%		61.4	%		8.0	%		30.7	%		0.0	%		100.1	%		88.0	%		(407	)
BOP		15,186		10.2	%		14,142		10.1	%		52.5	%		12.7	%		39.9	%		0.0	%		105.1	%		119.5	%		(1,140	)
Bonds		4,532		(4.3	)%		4,775		1.5	%		11.6	%		5.2	%		64.3	%		0.0	%		81.1	%		78.4	%		1,057
Other		2,458		6.5	%		2,279		22.4	%		2.4	%		0.2	%		45.3	%		0.0	%		47.9	%		37.2	%		1,106
Total	$	342,200		(8.0	)%	$	332,091		0.4	%		53.2	%		11.0	%		32.5	%		0.2	%		96.9	%		94.0	%	$	7,158
Grand Total	$	391,954		(6.4	)%	$	383,386		0.4	%		54.8	%		11.1	%		32.3	%		0.1	%		98.3	%		95.6	%	$	3,597

Note:  Some amounts may not foot due to rounding.

	2008		2007
Losses Paid	$	188,841	$	150,555
LAE Paid		34,461		32,203
Total Paid	$	223,302	$	182,758

3

Selective Insurance Group, Inc.

Diversified Insurance Services

( $ in thousands)

Three Months Ended March 31, 2008 (unaudited)
	Revenue							Net Income							Return on Revenue
	2008		2007		% Change			2008		2007		% Change			2008			2007			Pt Change
Flood		12,097		10,410		16	%		1,339		1,301		3	%		11.1	%		12.5	%		(1.4	)
Human Resource Administration Outsourcing		15,118		16,795		-10	%		507		884		-43	%		3.4	%		5.3	%		(1.9	)
Other		2,584		1,973		31	%		967		718		35	%		37.4	%		36.4	%		1.0
Total Operations		29,799		29,178		2	%		2,813		2,903		-3	%		9.4	%		10.0	%		(0.6	)
Human Resource Administration Outsourcing Statistics (unaudited)
	2008		2007		% Change
New Worksite EE - Selective Agents (Production)		730		912		-20	%
Total New Worksite EE - All Agents (Production)		870		1,333		-35	%
Total Worksite EE		24,017		26,689		-10	%
Annual Gross Billings (000's)	$	988,002		984,003		0	%
Annual Gross Billings / Avg Worksite EE	$	38,284		37,671		2	%

4

Selective Insurance Group, Inc. and Consolidated Subsidiaries

 Quarterly

GAAP Investment Income

($ in thousands)

 (Unaudited)

			For the three months ended						%
			March			March			Increase
			2008			2007			(Decrease)
Investment Income:
	Interest:
		Fixed Maturity Securities	$	36,406			34,588			5.3
		Short-term		1,437			2,478			(42.0	)
	Other Investments			1,833			2,360			(22.3	)
	Dividends			1,159			1,470			(21.2	)
	Change in Fair Value (1)			(1,888	)		-			N/M
	Miscellaneous			74			74			-
				39,021			40,970			(4.8	)
Investment Expense				1,155			1,107			4.3
Net Investment Income Before Tax				37,866			39,863			(5.0	)
Tax				8,495			8,706			(2.4	)
Net Investment Income After Tax			$	29,371			31,157			(5.7	)
Net Investment Income per Share				0.55			0.52			5.8
Effective Tax Rate				22.4	%		21.8	%
Average Yields:
Fixed Maturity Securites
	Pre Tax			4.6	%		4.6	%		-
	After Tax			3.6	%		3.6	%		-
Portfolio
	Pre Tax			4.1	%		4.4	%		(0.3	)
	After Tax			3.2	%		3.5	%		(0.3	)
			For the three months ended
			March			March
Net Realized Gains (Losses)			2008			2007
	Fixed Maturity			(611	)		(89	)
	Equity Securities			2,126			11,332
	Total			1,515			11,243
	Net of Tax			985			7,308
(1)	Selective adopted Fas 159, the Fair Value Option for Financial Assets and Financial Liablilities - Including an amendment
	of FASB Statement No. 115, on January 1, 2008 and has made the fair value option election as it relates to a
	portfolio of equity securities/short term (trading securities) currently being managed by one outside manager.

5

SELECTIVE INSURANCE GROUP, INC.	Unaudited
CONSOLIDATED BALANCE SHEETS	March 31,			December 31,
($ in thousands, except share amounts)	2008			2007
ASSETS
Investments:
Fixed maturity securities, held-to-maturity - at amortized cost
(fair value of:  $4,429 – 2008; $5,927 - 2007)	$	4,304			5,783
Fixed maturity securities, available-for-sale - at fair value
(amortized cost of:  $3,016,348 – 2008; $3,049,913 - 2007)		3,021,670			3,073,547
Equity securities, available-for-sale - at fair value
(cost of:  $147,174 – 2008; $160,390 - 2007)		232,787			274,705
Short-term investments - at cost which approximates fair value		212,545			190,167
Trading securities – at fair value (cost of: $17,358 – 2008)		23,219			-
Other investments		197,097			188,827
Total investments		3,691,622			3,733,029
Cash and cash equivalents		9,837			8,383
Interest and dividends due or accrued		35,153			36,141
Premiums receivable, net of allowance for uncollectible
accounts of:  $4,254 – 2008; $3,905 – 2007		496,548			496,363
Other trade receivables, net of allowance for uncollectible
accounts of:  $184 – 2008; $244 – 2007		22,493			21,875
Reinsurance recoverable on paid losses and loss expenses		7,307			7,429
Reinsurance recoverable on unpaid losses and loss expenses		222,968			227,801
Prepaid reinsurance premiums		82,761			82,182
Current federal income tax		-			4,235
Deferred federal income tax		42,302			22,375
Property and equipment - at cost, net of accumulated
depreciation and amortization of:  $121,693 – 2008; $117,832- 2007		56,418			58,561
Deferred policy acquisition costs		225,558			226,434
Goodwill		33,637			33,637
Other assets		43,882			43,547
Total assets	$	4,970,486			5,001,992
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for losses	$	2,199,024			2,182,572
Reserve for loss expenses		368,274			359,975
Unearned premiums		850,494			841,348
Senior convertible notes		-			8,740
Notes payable		286,158			286,151
Current federal income tax		5,619			-
Commissions payable		34,436			60,178
Accrued salaries and benefits		78,257			88,079
Other liabilities		102,532			98,906
Total liabilities		3,924,794			3,925,949
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:  94,851,326 – 2008; 94,652,930 - 2007		189,703			189,306
Additional paid-in capital		203,789			192,627
Retained earnings		1,125,597			1,105,946
Accumulated other comprehensive income		53,205			86,043
Treasury stock – at cost (shares:  41,544,557 – 2008; 40,347,894 - 2007)		(526,602	)		(497,879	)
Total stockholders' equity		1,045,692			1,076,043
Commitments and contingencies
Total liabilities and stockholders' equity	$	4,970,486			5,001,992

6

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarters ended
	March 31,
($ in thousands, except per share amounts)	2008			2007
Revenues:
Net premiums written	$	389,840			417,185
Net increase in unearned premiums and prepaid reinsurance premiums		(8,567	)		(37,172	)
Net premiums earned		381,273			380,013
Net investment income earned		37,866			39,863
Net realized gains		1,515			11,243
Diversified Insurance Services revenue		29,799			29,178
Other income		660			1,812
Total revenues		451,113			462,109
Expenses:
Losses incurred		210,130			203,310
Loss expenses incurred		43,049			42,983
Policy acquisition costs		128,680			122,918
Dividends to policyholders		535			1,487
Interest expense		5,309			6,331
Diversified Insurance Services expenses		25,514			24,811
Other expenses		11,294			11,070
Total expenses		424,511			412,910
Income before federal income tax		26,602			49,199
Federal income tax expense (benefit):
Current		11,135			15,611
Deferred		(5,036	)		(3,664	)
Total federal income tax expense		6,099			11,947
Net income		20,503			37,252
Earnings per share:
Basic net income	$	0.39			0.68
Diluted net income	$	0.38			0.62
Dividends to stockholders	$	0.13			0.12

7

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
	Quarters ended March 31,
($ in thousands, except per share amounts)	2008					2007
Common stock:
Beginning of year	$	189,306					183,124
Dividend reinvestment plan
(shares: 19,298 – 2008; 18,764 – 2007)		38					38
Convertible debentures
(shares: 45,759 – 2008; 107,344 – 2007)		92					215
Stock purchase and compensation plans
(shares: 133,339 – 2008; 586,729 – 2007)		267					1,173
End of period		189,703					184,550
Additional paid-in capital:
Beginning of year		192,627					153,246
Dividend reinvestment plan		429					422
Convertible debentures		645					171
Stock purchase and compensation plans		10,088					10,702
End of period		203,789					164,541
Retained earnings:
Beginning of year		1,105,946					986,017
Cumulative-effect adjustment due to adoption of FAS 159,
net of deferred income tax effect of $3,344		6,210					-
Net income		20,503		20,503			37,252		37,252
Cash dividends to stockholders ( $0.13 per share – 2008;
$0.12 per share – 2007)		(7,062	)				(6,842	)
End of period		1,125,597					1,016,427
Accumulated other comprehensive income:
Beginning of year		86,043					100,601
Cumulative-effect adjustment due to adoption of FAS 159,
net of deferred income tax effect of $(3,344)		(6,210	)				-
Other comprehensive (loss) income (decrease) increase in:
Net unrealized gains on investment securities,
Net of deferred income tax effect of
$(14,357) – 2008; $(1,740) – 2007		(26,663	)	(26,663	)		(3,232	)	(3,232	)
Defined benefit pension plans, net of deferred income tax effect of
$ 19 – 2008; $51 – 2007		35		35			93		93
End of period		53,205					97,462
Comprehensive Income				(6,125	)				34,113
Treasury stock:
Beginning of year		(497,879	)				(345,761	)
Acquisition of treasury stock
(shares: 1,196,663 – 2008; 3,127,376 – 2007)		(28,723	)				(78,355	)
End of period		(526,602	)				(424,116	)
Total stockholders’ equity	$	1,045,692					1,038,864

8

SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW	Quarters ended March 31,
($ in thousands)	2008				2007
Operating Activities
Net income		$	20,503			37,252
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			7,129			6,975
Share-based compensation expense			8,896			8,630
Net realized gains			(1,515	)		(11,243	)
Deferred tax			(5,036	)		(3,664	)
Unrealized loss on trading securities			1,888			-
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverable
on unpaid losses and loss expenses			29,598			63,053
Increase in unearned premiums, net of prepaid reinsurance and advance premiums			8,295			38,107
Increase in net federal income tax payable			9,854			13,206
Increase in premiums receivable			(185	)		(37,163	)
(Increase) decrease in other trade receivables			(618	)		1,633
Decrease (increase) in deferred policy acquisition costs			876			(8,656	)
Decrease in interest and dividends due or accrued			1,033			822
Decrease in reinsurance recoverable on paid losses and loss expenses			122			983
Decrease in accrued salaries and benefits			(11,724	)		(20,874	)
Decrease in accrued insurance expenses			(24,950	)		(24,887	)
Purchase of trading securities			(4,530	)		-
Sale of trading securities			4,696			-
Other-net			1,621			11,030
Net adjustments			25,450			37,952
Net cash provided by operating activities			45,953			75,204
Investing Activities
Purchase of fixed maturity securities, available-for-sale			(77,944	)		(89,915	)
Purchase of equity securities, available-for-sale			(7,212	)		(31,550	)
Purchase of other investments			(15,506	)		(20,228	)
Purchase of short-term investments			(341,234	)		(285,836	)
Sale of fixed maturity securities, available-for-sale			30,452			8,351
Sale of short-term investments			318,696			325,948
Redemption and maturities of fixed maturity securities, held-to-maturity			1,492			172
Redemption and maturities of fixed maturity securities, available-for-sale			79,566			63,004
Sale of equity securities, available-for-sale			6,995			32,149
Proceeds from other investments			2,609			2,578
Purchase of property and equipment			(1,825	)		(2,292	)
Net cash (used in) provided by investing activities			(3,911	)		2,381
Financing Activities
Dividends to stockholders			(6,572	)		(6,262	)
Acquisition of treasury stock			(28,723	)		(78,355	)
Net proceeds from stock purchase and compensation plans			2,196			1,980
Excess tax benefits from share-based payment arrangements			1,265			2,486
Principal payments of convertible bonds			(8,754	)		-
Net cash used in financing activities			(40,588	)		(80,151	)
Net increase (decrease) in cash and cash equivalents			1,454			(2,566	)
Cash and cash equivalents, beginning of year			8,383			6,443
Cash and cash equivalents, end of period		$	9,837			3,877

Supplemental Disclosures of Cash Flow Information

Cash paid during the year for:
Interest	$	1,968	3,095
Federal income tax		-	400
Supplemental schedule of non-cash financing activity:
Conversion of convertible debentures		169	380

9

 Selective Insurance Group, Inc.

 Combined Insurance Company Subsidiaries

 Unaudited Statutory Balance Sheets

 ($ in thousands)

	Mar-31			Dec-31
	2008			2007
ASSETS
Bonds	$	3,005,809			3,041,373
Common stocks		278,151			297,102
Other investments		197,172			188,827
Short-term investments		166,004			125,650
Total investments		3,647,136			3,652,952
Cash on hand and in banks		(32,779	)		(33,209	)
Interest and dividends due and accrued		34,918			36,057
Premiums receivable		493,497			491,308
Reinsurance recoverable on paid losses and expenses		7,307			7,429
Deferred tax recoverable		86,692			87,951
EDP equipment		4,296			4,691
Equities and deposits in pools and associations		11,013			10,411
Receivable for sold securities		61			167
Other assets		33,290			32,105
Total assets	$	4,285,431			4,289,862
LIABILITIES
Reserve for losses	$	1,975,244			1,953,960
Reinsurance payable on paid loss and loss expense		832			1,310
Reserve for loss expenses		366,405			358,126
Unearned premiums		767,733			759,166
Reserve for commissions payable		34,436			60,178
Ceded balances payable		8,014			8,192
Federal income tax payable		28,779			14,084
Premium and other taxes payable		25,774			24,982
Reserve for dividends to policyholders		4,520			5,651
Reserves for unauthorized reinsurance		1,258			1,258
Payable for securities		2,079			-
Funds withheld on account of others		5,225			5,070
Accrued salaries and benefits		34,507			48,582
Other liabilities		14,343			15,009
Total liabilities		3,269,149			3,255,568
POLICYHOLDERS' SURPLUS
Capital		28,325			28,325
Paid in surplus		235,792			235,792
Unassigned surplus		752,165			770,177
Total policyholders' surplus		1,016,282			1,034,294
Total liabilities and policyholders' surplus	$	4,285,431			4,289,862

10

Selective Insurance Group, Inc.

 Combined Insurance Company Subsidiaries

Unaudited Statutory Statements Of Income

($ in thousands)

	Three Months Ended March
UNDERWRITING	2008					2007
Net premiums written	$	391,953					418,912
Net premiums earned		383,387					381,717
Net losses paid		188,840					150,555
Change in reserve for losses		21,284					52,783
Net losses incurred		210,124		54.8	%		203,338		53.3	%
Net loss expenses paid		34,461					32,203
Change in reserve for loss expenses		8,279					10,555
Net loss expenses incurred		42,740		11.1	%		42,758		11.2	%
Net underwriting expenses incurred		126,486		32.3	%		129,913		31.0	%
Total deductions		379,350					376,009
Statutory gain		4,037					5,708
Net loss from premium balances charged off		(653	)				(648	)
Finance charges and other income		691					1,775
Total other income		38		0.0	%		1,127		-0.3	%
Policyholders' dividends incurred		(535	)	0.1	%		(1,487	)	0.4	%
Total underwriting gain		3,540		98.3	%		5,348		95.6	%
INVESTMENT
Net investment income earned		40,248					36,734
Net realized gain		3,320					11,243
Total income before income tax		47,108					53,325
Federal income tax expense		14,694					19,393
Net income	$	32,414					33,932
Policyholders' Surplus
Surplus, beginning of period	$	1,034,294					1,030,078
Net income		32,414					33,932
Change in deferred tax		1,411					6,046
Change in unrealized losses		(18,115	)				(3,550	)
Dividends to stockholders		(24,540	)				(20,005	)
Change in non-admitted assets		(9,087	)				(5,812	)
Surplus adjustments		(95	)				(14	)
Net change in surplus for period		(18,012	)				10,597
Surplus, end of period	$	1,016,282					1,040,675

Statutory underwriting gain:	$	3,540		5,348
Adustments under GAAP:
Deferred policy acquisition costs		(876	)	8,656
Flood income reclassification		(2,066	)	(2,009	)
Other, net		(2,050	)	(2,278	)
GAAP underwriting gain (loss)	$	(1,452	)	9,717

Note:  Some amounts or ratios may not foot due to rounding.

Certain amounts have been reclassified to conform to the current year's presentation.

11

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Municipal Fixed Income Portfolio as of March 31, 2008

($ in millions)

(unaudited)

	Average	Market	% of Total	Unrealized
	Credit Rating	Value	Muni Portfolio	Gain
Uninsured Securities	AA+	788	48%	10
Securities with Insurance Enhanced1	AAA	854	52%	13
Without Insurance Enhancement	AA-
Total		$     1,642	100%	$           23

1 Includes $19.5 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.

12

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Ratings on Municipal Fixed Income Portfolio as of March 31, 2008

($ in millions)

(unaudited)

	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	367	47%	705	83%	53	6%	1,072	65%	420	26%
AA+	177	22%	12	1%	102	12%	189	12%	279	17%
AA	143	18%	30	4%	153	18%	173	11%	296	18%
AA-	61	8%	46	5%	242	28%	107	6%	303	18%
A+	26	3%	39	5%	127	15%	65	4%	153	9%
A	-	0%	9	1%	84	10%	9	1%	84	5%
A-	2	0%	9	1%	54	6%	11	1%	56	3%
BBB+	4	0%	-	0%	14	2%	4	0%	18	1%
BBB	8	1%	-	0%	-	0%	8	0%	8	0%
BBB-	2	0%	3	0%	25	3%	5	0%	26	2%
Total	788	100%	854	100%	854	100%	1,642	100%	1,642	100%
Average Rating:	AA+		AAA		AA-		AA+		AA
Unrealized Gain:	10		13				23

1 Includes $19.5 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.

Note: Some amounts may not foot due to rounding.

13

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Municipal Fixed Income with Credit Enhancement

March 31, 2008

(in thousands)

(unaudited)

Credit Enhancement	Underlying Composite Rating	MarketValue	Book Value	Unrealized
AMBAC	A	29,278	29,279	(1)
	A-	9,799	9,602	197
	A+	8,128	8,223	(95)
	AA	30,223	29,975	247
	AA-	14,793	14,647	146
	AA+	11,235	10,900	336
	AAA	17,074	16,755	318
	BBB+	3,321	3,259	62
	N/R	5,798	5,790	8
AMBAC Total		129,650	128,431	1,219
FGIC	A	8,877	8,783	94
	A-	8,983	8,741	242
	A+	35,371	35,633	(262)
	AA	28,979	28,288	690
	AA-	47,945	47,807	138
	AA+	15,504	15,229	275
	AAA	12,475	11,984	491
	BBB-	2,882	2,899	(17)
	N/R	523	523	(1)
FGIC Total		161,538	159,888	1,650
FSA	A	16,125	15,835	290
	A-	15,950	15,634	316
	A+	26,997	26,492	506
	AA	39,168	38,508	660
	AA-	73,544	71,243	2,301
	AA+	60,316	59,196	1,120
	AAA	22,841	22,522	319
	N/R	1,751	1,785	(34)
FSA Total		256,693	251,215	5,478
MBIA	A	29,469	29,277	191
	A-	19,424	19,386	38
	A+	52,886	51,926	960
	AA	54,701	53,644	1,056
	AA-	106,051	103,751	2,301
	AA+	14,639	14,674	(35)
	AAA	254	250	4
	BBB-	2,149	2,137	12
	BBB+	11,084	10,725	358
	N/R	10,165	10,015	150
MBIA Total		300,821	295,785	5,036
RADIAN	N/R	1,278	1,266	12
RADIAN Total		1,278	1,266	12
XLCA	A+	3,768	3,883	(115)
XLCA Total		3,768	3,883	(115)
Grand Total		853,749	840,468	13,281

Muni's with Insurance as a % of total Munis >>>>>>>>>>    52.0%

Note:  Some amounts may not foot due to rounding.

14

Selective Insurance Group, Inc. and Consolidated Subsidiaries

March 31, 2008     ($ in thousands)

Residential Mortgage Backed Securities (RMBS) and Residential ABS - by RMBS Type

(unaudited)

Book Value
RMBS Type	AAA	AA	A	BBB	Total	% of Total Bond Portfolio
Agency	208,742	-	-	-	208,742	7%
FHA/VA	15,108	-	-	-	15,108	0%
Total Agency	223,849	-	-	-	223,849	7%
Alt-A	84,038	-	-	-	84,038	3%
CDO	-	9,344	-	-	9,344	0%
Home Equity ABS	3,506	-	-	5,000	8,506	0%
Non-Agency & Other Prime	98,610	14,157	4,512	1,302	118,582	4%
Total RMBS & RABS-Book Value	410,004	23,502	4,512	6,302	444,320	15%
% of Total RMBS & RABS	92%	5%	1%	1%	100%

Market Value
RMBS Type	AAA	AA	A	BBB	Total	% of Total Bond Portfolio
Agency	213,899	-	-	-	213,899	7%
FHA/VA	14,573	-	-	-	14,573	0%
Total Agency	228,471	-	-	-	228,471	8%
Alt-A	72,393	-	-	-	72,393	2%
CDO	-	7,937	-	-	7,937	0%
Home Equity ABS	3,466	-	-	4,089	7,555	0%
Non-Agency & Other Prime	95,084	11,169	3,619	860	110,732	4%
Total RMBS & RABS-Market Value	399,415	19,106	3,619	4,949	427,088	14%
% of Total RMBS & RABS	94%	4%	1%	1%	100%

Unrealized gains/(losses)
RMBS Type	AAA	AA	A	BBB	Total
Agency	5,157	-	-	-	5,157
FHA/VA	(535)	-	-	-	(535)
Total Agency	4,622	-	-	-	4,622
Alt-A	(11,645)	-	-	-	(11,645)
CDO	-	(1,407)	-	-	(1,407)
Home Equity ABS	(40)	-	-	(911)	(951)
Non-Agency & Other Prime	(3,526)	(2,989)	(894)	(442)	(7,850)
Total RMBS & RABS - Unrealized	(10,589)	(4,396)	(894)	(1,353)	(17,232)
% of Total RMBS & RABS	61%	26%	5%	8%	100%

Note: Some amounts may not foot due to rounding.

15

Selective Insurance Group, Inc. and Consolidated Subsidiaries

March 31, 2008     ($ in thousands)

Residential Mortgage Backed Securities (RMBS) and Residential ABS - Vintage Year

(unaudited)

Book Value
Vintage Yr	AAA	AA	A	BBB	Total	Type % of Total	% of Total Bond Portfolio
1983	22	-	-	-	22	0%	0%
2002	81,709	395	-	-	82,103	18%	3%
2003	58,919	-	3,137	-	62,056	14%	2%
2004	46,761	-	-	-	46,761	11%	2%
2005	74,173	-	-	-	74,173	17%	2%
2006	135,092	9,344	-	5,000	149,436	34%	5%
2007	13,328	13,763	1,375	1,302	29,768	7%	1%
Total RMBS & RABS-Book Value	410,004	23,502	4,512	6,302	444,320	100%	15%
% of Total RMBS & RABS	92%	5%	1%	1%	100%

Market Value
Vintage Yr	AAA	AA	A	BBB	Total	Type % of Total	% of Total Bond Portfolio
1983	24	-	-	-	24	0%	0%
2002	84,026	400	-	-	84,425	20%	3%
2003	59,718	-	2,546	-	62,264	15%	2%
2004	46,229	-	-	-	46,229	11%	2%
2005	70,568	-	-	-	70,568	17%	2%
2006	125,333	7,937	-	4,089	137,359	32%	5%
2007	13,518	10,769	1,073	860	26,219	6%	1%
Total RMBS & RABS-Market Value	399,415	19,106	3,619	4,949	427,088	100%	14%
% of Total RMBS & RABS	94%	4%	1%	1%	100%

Unrealized Gain/(Loss)
Vintage Yr	AAA	AA	A	BBB	Total
1983	2	-	-	-	2
2002	2,317	5	-	-	2,322
2003	799	-	(591)	-	207
2004	(532)	-	-	-	(532)
2005	(3,605)	-	-	-	(3,605)
2006	(9,759)	(1,407)	-	(911)	(12,077)
2007	190	(2,994)	(302)	(442)	(3,549)
Total RMBS & RABS - Unrealized	(10,589)	(4,396)	(894)	(1,353)	(17,232)
% of Total RMBS & RABS	61%	26%	5%	8%	100%

Note: Some amounts may not foot due to rounding.

16

Selective Insurance Group, Inc. and Consolidated Subsidiaries

March 31, 2008     ($ in thousands)

Commerical Mortgage Backed Securities by Vintage Year

(unaudited)

 Book Value

Vintage Yr	AAA	AA	A	BBB	BB	Total	Type % of Total	% of Total Bond Portfolio
1996	5,256	-	-	-	-	5,256	2%	0%
1998	1,135	-	-	-	-	1,135	0%	0%
1999	27,417	-	-	-	-	27,417	10%	1%
2000	34,179	-	-	-	-	34,179	12%	1%
2001	36,782	-	-	-	-	36,782	13%	1%
2002	49,588	-	-	-	-	49,588	17%	2%
2003	2,006	-	-	-	-	2,006	1%	0%
2004	9,500	5,000	-	-	-	14,500	5%	0%
2005	11,580	4,845	-	4,797	-	21,222	7%	1%
2006	26,524	10,388	3,000	-	-	39,911	14%	1%
2007	29,331	6,911	2,000	10,632	5,000	53,873	19%	2%
Total CMBS-Book Value	233,296	27,143	5,000	15,429	5,000	285,868	100%	9%
% of Total CMBS	82%	9%	2%	5%	2%	100%

 Market Value

Vintage Yr	AAA	AA	A	BBB	BB	Total	Type % of Total	% of Total Bond Portfolio
1996	5,167	-	-	-	-	5,167	2%	0%
1998	1,133	-	-	-	-	1,133	0%	0%
1999	27,969	-	-	-	-	27,969	10%	1%
2000	35,127	-	-	-	-	35,127	13%	1%
2001	38,094	-	-	-	-	38,094	14%	1%
2002	50,349	-	-	-	-	50,349	19%	2%
2003	1,957	-	-	-	-	1,957	1%	0%
2004	9,379	4,900	-	-	-	14,280	5%	0%
2005	10,066	4,704	-	3,229	-	17,998	7%	1%
2006	21,314	8,272	2,780	-	-	32,367	12%	1%
2007	29,652	6,006	1,791	5,965	4,200	47,614	18%	2%
Total CMBS-Market Value	230,206	23,883	4,571	9,194	4,200	272,054	100%	9%
% of Total CMBS	85%	9%	2%	3%	2%	100%

 Unrealized Gain/(Loss)

Vintage Yr	AAA	AA	A	BBB	BB	Total
1996	(89)	-	-	-	-	(89)
1998	(2)	-	-	-	-	(2)
1999	552	-	-	-	-	552
2000	948	-	-	-	-	948
2001	1,312	-	-	-	-	1,312
2002	761	-	-	-	-	761
2003	(48)	-	-	-	-	(48)
2004	(120)	(100)	-	-	-	(220)
2005	(1,515)	(141)	-	(1,568)	-	(3,224)
2006	(5,210)	(2,115)	(220)	-	-	(7,544)
2007	321	(904)	(209)	(4,667)	(800)	(6,259)
Total CMBS-Unrealized	(3,090)	(3,260)	(429)	(6,235)	(800)	(13,814)
% of Total CMBS	22%	24%	3%	45%	6%	100%

Note: Some amounts may not foot due to rounding.

17

Selective Insurance Group, Inc. and Consolidated Subsidiaries

March 31, 2008     ($ in thousands)

Commerical Mortgage Backed Securities by Type

(unaudited)

Book Value
CMBS Type	AAA	AA	A	BBB	BB	Total	Type % of Total	% of Total Bond Portfolio
Agency MultiFamily	48,746	-	-	-	-	48,746	17%	2%
Cell Tower	-	19,845	5,000	-	-	24,845	9%	1%
Conduit	28,410	-	-	-	-	28,410	10%	1%
Fusion	117,849	3,911	-	13,429	-	135,188	47%	4%
Lease-Backed	5,120	-	-	-	-	5,120	2%	0%
Re-Securitization	25,104	3,388	-	-	-	28,492	10%	1%
Single Borrower - Multiple Properties	5,067	-	-	2,000	5,000	12,067	4%	0%
Timberland	3,000	-	-	-	-	3,000	1%	0%
Total CMBS-Book Value	233,296	27,143	5,000	15,429	5,000	285,868	100%	9%
% of Total CMBS	82%	9%	2%	5%	2%	100%

Market Value
CMBS Type	AAA	AA	A	BBB	BB	Total	Type % of Total	% of Total Bond Portfolio
Agency MultiFamily	50,906	-	-	-	-	50,906	19%	2%
Cell Tower	-	19,193	4,571	-	-	23,764	9%	1%
Conduit	28,758	-	-	-	-	28,758	11%	1%
Fusion	118,495	3,246	-	7,592	-	129,333	48%	4%
Lease-Backed	5,233	-	-	-	-	5,233	2%	0%
Re-Securitization	18,760	1,444	-	-	-	20,205	7%	1%
Single Borrower - Multiple Properties	5,191	-	-	1,601	4,200	10,993	4%	0%
Timberland	2,862	-	-	-	-	2,862	1%	0%
Total CMBS-Market Value	230,206	23,883	4,571	9,194	4,200	272,054	100%	9%
% of Total CMBS	85%	9%	2%	3%	2%	100%

Unrealized gains/(losses)
CMBS Type	AAA	AA	A	BBB	BB	Total
Agency MultiFamily	2,160	-	-	-	-	2,160
Cell Tower	-	(652)	(429)	-	-	(1,081)
Conduit	348	-	-	-	-	348
Fusion	646	(665)	-	(5,836)	-	(5,855)
Lease-Backed	113	-	-	-	-	113
Re-Securitization	(6,344)	(1,943)	-	-	-	(8,287)
Single Borrower - Multiple Properties	125	-	-	(399)	(800)	(1,074)
Timberland	(138)	-	-	-	-	(138)
Total CMBS-Unrealized	(3,090)	(3,260)	(429)	(6,235)	(800)	(13,814)

Note: Some amounts may not foot due to rounding.