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EXHIBIT 10.4
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                 AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT
                 ---------------------------------------




     AMENDMENT NO. 1, dated as of May 1, 1998 among SELECTIVE INSURANCE 
GROUP, INC., a New Jersey corporation ("Selective"), having an office at 
Wantage Avenue, Branchville, New Jersey 07826, SELECTIVE INSURANCE COMPANY
OF AMERICA, a New Jersey corporation ("SICA"), having an office at 
Wantage Avenue, Branchville, New Jersey 07826, and GREGORY E. MURPHY having
an address at 10 Condit Road, Mountain Lakes, New Jersey 07046
(the "Executive"), to Employment Agreement dated as of August 1, 1995
among Selective, SICA and the Executive (the "Employment Agreement").

     WHEREAS, Selective, SICA and the Executive have executed and delivered
the Employment Agreement and Selective has guaranteed all of the obligations
of SICA as the Employer under the Employment Agreement; and

     WHEREAS, the parties hereto desire to amend the Employment Agreement
to modify the description of the duties of the Executive as set forth in
Section 4(a) of the Employment Agreement, to extend the term thereof and
to modify the Salary (as defined in Section 3 of the Employment Agreement)
provided for therein.

     THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto agree as follows:

     1.  The term of employment under the Employment Agreement is
hereby extended for a period of three (3) years commencing August 1, 1998
(the "Renewal Term"), and all references in the Agreement to the term 
thereof or the Executive's term of employment thereunder shall include
the Renewal Term.

     2.  The Salary, as defined and provided for in Section 3 of the
Employment Agreement, shall be paid to the Executive at a rate of not less
than Three Hundred Twenty-Five Thousand Dollars ($325,000.00) per year.


     3.  The Executive is presently serving as President and Chief
Operating Officer of SICA and Selective, and all references in the
Employment Agreement to Executive serving as Senior Vice President and
Chief Financial Officer of the Company (as defined in the Employment
Agreement) are hereby amended to refer to the Executive as President and
Chief Operating Officer of the Company (as defined in the Employment
Agreement) and Selective.

     4.  Selective reaffirms that it guarantees to the Executive the
full performance by SICA of all of its obligations under the
Employment Agreement as amended herein.
     5.  Except as amended herein, the Employment Agreement shall continue
in full force and effect on and after the date hereof.

     IN WITNESS WHEREOF, this Amendment has been duly executed by the
Executive and on behalf of Selective and SICA by their duly authorized
officers, as of the date and year first above written.



                                        SELECTIVE INSURANCE GROUP, INC.


                                        By /s/ James W. Entringer
                                           -----------------------
                                        Name:  James W. Entringer
                                        Title: Chairman and Chief
                                               Executive Officer


                                        SELECTIVE INSURANCE COMPANY
                                        OF AMERICA


                                        By: /s/ James W. Entringer
                                           ------------------------
                                        Name:  James W. Entringer
                                        Title: Chairman and Chief
                                               Executive Officer


                                           /s/ Gregory E. Murphy
                                           ------------------------
                                           Executive

