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<SEC-DOCUMENT>0000230557-04-000174.txt : 20041026
<SEC-HEADER>0000230557-04-000174.hdr.sgml : 20041026
<ACCEPTANCE-DATETIME>20041026165744
ACCESSION NUMBER:		0000230557-04-000174
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20041026
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20041026
DATE AS OF CHANGE:		20041026

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SELECTIVE INSURANCE GROUP INC
		CENTRAL INDEX KEY:			0000230557
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				222168890
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08641
		FILM NUMBER:		041097223

	BUSINESS ADDRESS:	
		STREET 1:		40 WANTAGE AVENUE
		CITY:			BRANCHVILLE
		STATE:			NJ
		ZIP:			07890
		BUSINESS PHONE:		2019483000

	MAIL ADDRESS:	
		STREET 1:		40 WANTAGE AVE
		STREET 2:		40 WANTAGE AVE
		CITY:			BRANCHVILLE
		STATE:			NJ
		ZIP:			07890

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SRI CORP
		DATE OF NAME CHANGE:	19860508
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8-k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html>

<head>

<title>Form 8-k</title>

</head>

<body>

<div>

<p align=center style="margin-top: 0; margin-bottom: 0"><b><font size="2">United States<br>
Securities and Exchange Commission<br>
Washington, D.C. 20549<br>
<br>
Form 8-K<br>
Current Report<br>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></b></p>
<p align=center style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=500 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">Date of Report (Date of
  earliest event reported)&nbsp;&nbsp;&nbsp;&nbsp; </font> <b><font size="2">October 26, 2004</font></b></p>
  </td>
  <td width=131 valign=top>
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=500 valign=top>
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  <td width=131 valign=top>
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
 </tr>
</table>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<table border=0 cellspacing=0 cellpadding=0 id="table1">
 <tr>
  <td width=631 valign=top>
  <p align="center" style="margin-top: 0; margin-bottom: 0"><b><u>
  <font size="2">Selective
  Insurance Group, Inc.</font></u></b></td>
 </tr>
 <tr>
  <td width=631 valign=top>
  <p align="center" style="margin-top: 0; margin-bottom: 0"><font size="2">(Exact name of registrant as specified in its
  charter)</font></td>
 </tr>
</table>



<div align=center>

<p align="center" style="margin-top: 0; margin-bottom: 0">&nbsp;</div>





<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=223 valign=top align="center">
  <p align=center style="margin-top: 0; margin-bottom: 0"><u><b><font size="2">New Jersey</font></b></u></p>
  </td>
  <td width=18 valign=top align="center">
  <p style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
  </td>
  <td width=186 valign=top align="center">
  <p align=center style="margin-top: 0; margin-bottom: 0"><b><u><font size="2">0-8641</font></u></b></p>
  </td>
  <td width=18 valign=top align="center">
  <p style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
  </td>
  <td width=186 valign=top align="center">
  <p align=center style="margin-top: 0; margin-bottom: 0"><b><u><font size="2">22-2168890</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=223 valign=top align="center">
  <p align=center style="margin-top: 0; margin-bottom: 0"><font size="2">(State or other jurisdiction of incorporation)</font></p>
  </td>
  <td width=18 valign=top align="center">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=186 valign=top align="center">
  <p align=center style="margin-top: 0; margin-bottom: 0"><font size="2">(Commission File Number)</font></p>
  </td>
  <td width=18 valign=top align="center">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=186 valign=top align="center">
  <p align=center style="margin-top: 0; margin-bottom: 0"><font size="2">(IRS Employer No.)</font></p>
  </td>
 </tr>
</table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=631 valign=top>
  <p align=center style="margin-top: 0; margin-bottom: 0"><u><b><font size="2">40 Wantage
  Avenue, Branchville, New Jersey 07890</font></b></u></p>
  </td>
 </tr>
 <tr>
  <td width=631 valign=top>
  <p align=center style="margin-top: 0; margin-bottom: 0"><font size="2">(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)</font></p>
  </td>
 </tr>
</table>



<p align="center" style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<table border=0 cellspacing=0 cellpadding=0 width="632">
 <tr>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">Registrant's telephone
  number, including area code</font></p>
  </td>
  <td width=301 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><b><u><font size="2">(973) 948-3000</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=301 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
 </tr>
</table>



<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=631 valign=top>
  <p align=center style="margin-top: 0; margin-bottom: 0"><b><u><font size="2">n/a</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=631 valign=top>
  <p align=center style="margin-top: 0; margin-bottom: 0"><font size="2">(Former name or former address, if changed since
  last report.)</font></p>
  </td>
 </tr>
</table>



<p align="center" style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0"><font size="2">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:</font></p>



<table border=0 cellspacing=0 cellpadding=0 width=743 style="border-left-width: 0px; border-top-width: 0px; border-bottom-width: 0px">
 <tr>
  <td width=27 valign=top style="border-style: none; border-width: medium; padding-left: 4px; padding-right: 4px; padding-top: 1px; padding-bottom: 1px" bordercolor="#000000">

  <p style="margin-top: 0; margin-bottom: 0">

  <font size="2">[&nbsp; ]</font></td>
  <td width=708 valign=top style="border-left-style: none; border-left-width: medium">
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp; Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
  </td>
 </tr>
 <tr>
  <td width=27 valign=top style="border-style: none; border-width: medium; padding-left: 4px; padding-right: 4px; padding-top: 1px; padding-bottom: 1px" bordercolor="#000000">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=708 valign=top style="border-left-style: none; border-left-width: medium">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
 </tr>
 <tr>
  <td width=27 valign=top style="border-style: none; border-width: medium; padding-left: 4px; padding-right: 4px; padding-top: 1px; padding-bottom: 1px" bordercolor="#000000">

  <p style="margin-top: 0; margin-bottom: 0">

  <font size="2">[&nbsp; ]</font></td>
  <td width=708 valign=top style="border-left-style: none; border-left-width: medium">
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp; Soliciting material
  pursuant to Rule 14a - 12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
  </td>
 </tr>
 <tr>
  <td width=27 valign=top style="border-style: none; border-width: medium; padding-left: 4px; padding-right: 4px; padding-top: 1px; padding-bottom: 1px" bordercolor="#000000">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=708 valign=top style="border-left-style: none; border-left-width: medium">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
 </tr>
 <tr>
  <td width=27 valign=top style="border-style: none; border-width: medium; padding-left: 4px; padding-right: 4px; padding-top: 1px; padding-bottom: 1px" bordercolor="#000000">

  <p style="margin-top: 0; margin-bottom: 0">

  <font size="2">[&nbsp; ]</font></td>
  <td width=708 valign=top style="border-left-style: none; border-left-width: medium">
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp; Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))</font></p>
  </td>
 </tr>
 <tr>
  <td width=27 valign=top style="border-style: none; border-width: medium; padding-left: 4px; padding-right: 4px; padding-top: 1px; padding-bottom: 1px" bordercolor="#000000">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=708 valign=top style="border-left-style: none; border-left-width: medium">

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
 </tr>
 <tr>
  <td width=27 valign=top style="border-style: none; border-width: medium; padding-left: 4px; padding-right: 4px; padding-top: 1px; padding-bottom: 1px" bordercolor="#000000">

  <p style="margin-top: 0; margin-bottom: 0">

  <font size="2">[&nbsp; ]</font></td>
  <td width=708 valign=top style="border-left-style: none; border-left-width: medium">
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp; Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c))</font></p>
  </td>
 </tr>
</table>



<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Item 2.02 Results of
Operations and Financial Condition</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0"><font size="2">On October 26, 2004,
Selective Insurance Group, Inc. issued a press release announcing results for the third quarter ended September 30, 2004.&nbsp; The press release is attached hereto as Exhibit
99.1 and is being furnished, not filed, under Item 2.02 to this Report on Form
8-K.<br><br></font></p>

<p style="margin-top: 0; margin-bottom: 0"><font size="2">Item 9.01 Financial
Statements and Exhibits<br><br></font></p>

<p style="margin-top: 0; margin-bottom: 0"><font size="2">(c) Exhibits <br><br>
</font></p>

<p style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 99.1&nbsp; Press
Release of Selective Insurance Group, Inc. dated October 26, 2004.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<u><hr color="#000080"><P STYLE="page-break-after: always"></P>
</u>

<p style="margin-top: 0; margin-bottom: 0"><font size="2"><br
clear=all></font></p>

<p align=center style="margin-top: 0; margin-bottom: 0"><font size="2">SIGNATURES<br>
<br><br></font></p>

<p style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>





<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=222 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><b><font size="2">SELECTIVE INSURANCE GROUP, INC</font></b><font size="2">.</font></p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">(Registrant)</font></p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">Date:&nbsp; October 26,
  2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><u><font size="2">By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">Name:&nbsp; Michele N. Schumacher, Esq.</font></p>
  </td>
 </tr>
 <tr>
  <td width=222 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=37 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
  <td width=331 valign=top>
  <p style="margin-top: 0; margin-bottom: 0"><font size="2">Title:&nbsp; Vice President, Corporate Counsel &amp;
  Corporate Governance Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<u><hr color="#000080"><P STYLE="page-break-after: always"></P><font size="2"><br clear=all>
</font>
</u>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



















<p align=center style="margin-top: 0; margin-bottom: 0"><font size="2">EXHIBIT INDEX</font></p>
<p align=center style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p align=center style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0"><u><font size="2">Exhibit
No.</font></u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> <u><font size="2">Description</font></u></p>

<p style="margin-top: 0; margin-bottom: 0"><font size="2">99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Press
Release dated October 26, 2004.</font></p>





</div>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>q32004earnings.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>

<head>

<title>Selective Insurance </title>

</head>

<body link=blue vlink=purple>

<div>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=241 valign=top>
  <p><font size="2" face="Arial">Selective Logo</font></p>
  </td>
  <td width=349 valign=top>

  </td>
 </tr>
 <tr>
  <td width=241 valign=top>

  </td>
  <td width=349 valign=top>
  <p><font size="2" face="Arial">Selective Insurance Group,
  Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top>

  </td>
  <td width=349 valign=top>
  <p><font size="2" face="Arial">40 Wantage Avenue</font></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top>

  </td>
  <td width=349 valign=top>
  <p><font size="2" face="Arial">Branchville, New Jersey
  07890</font></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top>

  </td>
  <td width=349 valign=top>
  <p><font size="2" face="Arial">www.selective.com</font></p>
  </td>
 </tr>
</table>

<p style="margin-top: 0; margin-bottom: 0"><br>
<br><br></p>

<p style="margin-top: 0; margin-bottom: 0"><font face="Arial"><b><font size="2">For release at 4:15
p.m. (EST) on Oct. 26, 2004<br>
</font>
</b><font size="2">Media Contact: Sharon
 Cooper <br>
973-948-1324, sharon.cooper@selective.com<br></font></font></p>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2" face="Arial">Investor Contact: Dale
Thatcher <br>
973-948-1774, dale.thatcher@selective.com<br><br></font></p>

<p align=center style="margin-top: 0; margin-bottom: 0"><font face="Arial"><b><font size="4">Selective Insurance Group Reports<br>
2004 3rd Quarter Earnings</font><font size="2"><br></font></b><font size="2">Net income up 92%<br>
Operating income</font><sup><font size="1">1</font></sup><font size="2"> up 94%<br>
Operating cash flow up 31%, to $140 million<br>
Company raises dividend 12%<br><br></font></font></p>

<p style="margin-top: 0; margin-bottom: 0"><font face="Arial"><font size="2">Branchville,
NJ - Oct. 26, 2004 - Selective Insurance Group, Inc. (NASDAQ: SIGI), today
reported net income of $28.3 million, or $0.90 per diluted share, for the third
quarter ended Sept. 30, 2004, an increase of 92%, compared with $14.7 million,
or $0.53 per diluted share, for the same period last year. Operating income</font><sup><font size="1">1</font></sup><font size="2">
increased 94%, to $27.3 million, or $0.87 per diluted share, for the third
quarter 2004, compared with $14 million, or $0.51 per diluted share, for the third
quarter 2003. </font></font> </p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0"><font face="Arial" size="2">Net
premiums written increased 12% to $356.5 million for the third quarter 2004,
compared with the same period last year. Selective's GAAP combined ratio
improved more than four points, to 98.1% for the quarter, compared with 102.2% for
the third quarter of 2003. For the same period, the statutory combined ratio
improved almost five points to 96.2%, compared with 100.9%. Weather-related
catastrophe losses accounted for 3.6 points of both the GAAP and statutory
combined ratios for the third quarter 2004, or $7.9 million, after-tax. That
compared with 4.7 points, or $8.8 million after-tax, for the third quarter of 2003.
Selective's commercial lines operation, which represents 84% of premium volume,
posted a statutory combined ratio of 96.5% for the quarter, an improvement of
2.8 points compared with third quarter 2003. For the comparable period, the
personal lines statutory combined ratio improved 12.7 points, to 94.6%. </font> </p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=295 valign=top>
  <div>
  <hr size=1 width="95%" noshade color=gray align=left>
  </div>
  </td>
  <td width=295 valign=top>

  <p style="margin-top: 0; margin-bottom: 0">

  </td>
 </tr>
</table>

<p style="margin-top: 0; margin-bottom: 0"><font face="Arial" size="2"><sup>&nbsp;</sup></font></p>

<p style="margin-top: 0; margin-bottom: 0"><font face="Arial"><sup><font size="1">1</font></sup><font size="1">Operating 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
attached 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.</font></font></p><hr color="#000080"><P STYLE="page-break-after: always"></P>


<p style="margin-top: 0; margin-bottom: 0"><font face="Arial"><font size="2">Selective Insurance Group, Inc., Chairman, President and CEO
Gregory E. Murphy stated: &quot;We continue to deliver superior products, service
and value-added offerings to agents and customers through Selective's
high-tech, high-touch approach, and have now positioned the company as one of
the strongest regional carriers. We generated another solid quarter with operating
income</font><sup><font size="1">1</font></sup><font size="2"> up 94%. Our GAAP combined ratio improved 4.1 points, and
cash from operations was up 31% to $140 million. Selective's commercial lines
premiums grew 14% for the quarter and commercial lines renewal price increases were
up 9.4%. Pricing continued to outpace loss trends this quarter, and we maintain
a favorable outlook for our commercial lines business.&quot;</font></font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0"><font face="Arial" size="2">Murphy
added: &quot;At a time when financial strength has never been more critical, Fitch
Ratings has upgraded Selective's financial strength rating to 'A+,' due, in
part, to our consistently favorable and improving commercial lines performance.
</font>
</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0"><font face="Arial" size="2">&quot;As a
result of ongoing improvements across the operation, the Board of Directors
approved a 12% increase in the cash dividend on our common stock, to $0.19 per
share for the quarter.&quot; The dividend is payable Dec. 1, 2004 to stockholders of
record on Nov. 15, 2004. </font> </p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0">

<font face="Arial" size="2">Selective was again named to the &quot;Ward's 50 Benchmark Group,&quot;
a listing of the 50 top performing companies in the property-casualty insurance
sector. The consulting group analyzed more than 2,900 property-casualty
insurance companies to identify the top 50 that excelled at balancing safety,
consistency and performance over the past five years. </font> </p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0">

<font face="Arial" size="2">In addition, the Professional Independent Agent Association named Selective
the national &quot;Company of Excellence&quot; for 2004. The prestigious award
honored Selective for its extraordinary commitment to the independent agency
system.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>



<p style="margin-top: 0; margin-bottom: 0"><font face="Arial" size="2">Murphy said: &quot;This national recognition is truly a great
honor, and an indication of the progress we continue to forge with agents who
share our passion for exceeding customer expectations through the best combination
of high-tech and high-touch.&quot; </font> </p>



<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font face="Arial" size="2">Stockholders'
equity at Sept. 30, 2004 was up 17% to $834.2 million compared with Sept. 30,
2003. For the same period, book value per share increased 14%, to $30.04. </font> </p>



<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font face="Arial" size="2">Overall
revenue for the third quarter 2004 increased 15% to $396.2 million, compared
with third quarter 2003. Revenue at the Company's Diversified Insurance
Services was up 13%, to $27.6 million, while return on revenue for this
operation increased to 11.3%, compared with 7.7% for third quarter 2003.</font></p>



<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font face="Arial"><font size="2">The
Company reported net income of $84.7 million, or $2.70 per diluted share, for
the nine months ended Sept. 30, 2004. Operating income</font><sup><font size="1">1</font></sup><font size="2"> was $80.1
million, or $2.56 per diluted share, for the nine-month period. For the
comparable period last year, the Company reported net income of $42.5 million,
or $1.54 per diluted share, and operating income</font><sup><font size="1">1</font></sup><font size="2"> of $37.1 million, or $1.35 per
diluted share. Selective's GAAP combined ratio improved to 97.2% for the nine
months, compared with 103.2% for the nine-month </font></font> </p><hr color="#000080"><P STYLE="page-break-after: always"></P>


<p><font face="Arial" size="2">period
ended Sept. 30, 2003. For the same period, the statutory combined ratio
improved to 95.6%, compared with 101.6%. </font> </p>



<p><font face="Arial" size="2">The
company also announced it has updated its Investor Disclosure Guidelines to
permit the disclosure of forward-looking estimates at any time during the year.
The revised information is available in the Corporate Governance section of the
company's website at www.selective.com. Selective will host an Investor Day at
the NASDAQ MarketSite in New York City on Nov. 9, 2004.</font></p>



<p><font face="Arial" size="2">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. The webcast of Selective's quarterly analyst
conference call will be simulcast at 8:30am EST, on Oct. 27, 2004, at
www.selective.com. The webcast will be available for rebroadcast until the
close of business on Nov. 29, 2004.</font></p>



<p><font face="Arial" size="2">Selective Insurance Group, Inc., headquartered in
Branchville, New Jersey, is a holding company for six property and casualty
insurance companies that offer primary and alternative market insurance for
commercial and personal risks. The insurance companies are rated &quot;A+&quot;
(Superior) by A.M. Best. Through other subsidiaries, the company offers medical
claim management services; human resources benefits and administration
services; risk management products and services; and flood insurance policy,
administration and claim services. Selective maintains a website at
www.selective.com.</font></p>



<p><font face="Arial" size="2">This
press release contains certain statements that are not historical facts and are
considered forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. 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 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 actual results to be
materially different from those expressed or implied by the forward-looking
statements.&nbsp; These statements are only
predictions and we can give no assurance that such expectations will prove to
be correct. These risks and uncertainties include, but are not limited to:</font></p>



<ul>
  <li><font face="Arial" size="2">The
     frequency and severity of catastrophic events, including hurricanes,
     tornadoes, windstorms, earthquakes, hail, severe winter weather, fires,
     explosions and terrorism; </font> </li>
  <li><font face="Arial" size="2">Adverse
     economic, market or regulatory conditions; </font> </li>
  <li><font face="Arial" size="2">The
     concentration of our business in a number of east coast and Midwestern
     states;</font></li>
  <li><font face="Arial" size="2">The
     adequacy of our loss reserves;</font></li>
  <li><font face="Arial" size="2">The
     cost and availability of reinsurance;</font></li>
  <li><font face="Arial" size="2">Our
     ability to collect on reinsurance and the solvency of our reinsurers;&nbsp;
  </font>
  </li>
  <li><font face="Arial" size="2">Uncertainties
     related to insurance premium rate increases and business retention;</li></font></li>
</ul>
<hr color="#000080"><P STYLE="page-break-after: always"></P>
<ul>
  <li><font face="Arial" size="2">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;</font></li>
  <li><font face="Arial" size="2">Our
     ability to maintain favorable ratings from A.M. Best, Standard &amp;
     Poor's, Moody's and Fitch;</font></li>
  <li><font face="Arial" size="2">Fluctuations
     in interest rates and the performance of the financial markets;</font></li>
  <li><font face="Arial" size="2">Our
     entry into new markets and businesses; and </font> </li>
  <li><font face="Arial" size="2">Other
     risks and uncertainties we identify in filings with the Securities and
     Exchange Commission, including, but not limited to the Annual Report on
     Form 10-K; although we do not promise to update such forward-looking
     statements to reflect actual results or changes in assumptions or other
     factors that could affect these statements. </font> </li>
</ul>
<hr color="#000080"><P STYLE="page-break-after: always"></P><br clear=all>




<table border=0 cellspacing=0 cellpadding=0 width=556>
 <tr>
  <td width=371 nowrap valign=bottom>
  <p><font size="2" face="Arial">Selective Insurance Group,
  Inc. (Nasdaq: SIGI) *</font></p>
  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=75 nowrap valign=bottom>

  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=65 nowrap valign=bottom>

  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5 valign=bottom>
  <p align=center><b><font size="2" face="Arial">GAAP Highlights and Reconciliation of Non-GAAP
  Measures to Comparable </font> </b></p>
  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5 valign=bottom>
  <p align=center><b><font size="2" face="Arial">GAAP Measures</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5 valign=bottom>
  <p><i><font size="2">(in thousands, except
  per share data)</font></i></p>
  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5 valign=bottom>
  <div align=center><b>
  <hr size=1 width="100%" noshade color=black align=center>
  </b></div>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap valign=bottom>
  <p><b><u><font size="2">3 months ended
  September 30:</font></u></b></p>
  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><b><u><font size="2">2004</font></u></b></p>
  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><b><u><font size="2">2003</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap valign=bottom>
  <p><font size="2">Net premiums written</font></p>
  </td>
  <td width=23 nowrap valign=bottom>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><font size="2">356,451 </font> </p>
  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><font size="2">317,513 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net premiums earned</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">337,074 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">289,681 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net investment income</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">29,146 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">27,324 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Diversified insurance
  services revenue</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">27,648 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">24,453 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Total revenues </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">396,187 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">343,342 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap valign=bottom>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Operating income</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">27,268 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">14,048 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Capital gain, after-tax</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">1,060 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">669 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <div align=right>
  <hr size=1 width="95%" noshade color=gray align=right>
  </div>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <div align=right>
  <hr size=1 width="95%" noshade color=gray align=right>
  </div>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net income</font></p>
  </td>
  <td width=23 nowrap>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">28,328 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">14,717 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right>==========</p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right>==========</p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Statutory combined ratio</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">96.2%</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">100.9%</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">GAAP combined ratio</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">98.1%</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">102.2%</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Operating income per
  diluted share</font></p>
  </td>
  <td width=23 nowrap>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">0.87 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">0.51 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net income per diluted
  share</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">0.90 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">0.53 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Weighted average diluted
  shares</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">32,398 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">27,723 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Book value per share</font></p>
  </td>
  <td width=23 nowrap>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">30.04 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">26.32 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5>
  <p align=center><i><font size="2">*All amounts included in this release exclude
  inter-company transactions. </font> </i></p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap valign=bottom>

  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>

  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>

  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5 valign=bottom>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5 valign=bottom>
  <p><i><font size="2">(in thousands, except
  per share data)</font></i></p>
  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5 valign=bottom>
  <div align=center><b>
  <hr size=1 width="100%" noshade color=black align=center>
  </b></div>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap valign=bottom>
  <p><b><u><font size="2">9 months ended
  September 30:</font></u></b></p>
  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><b><u><font size="2">2004</font></u></b></p>
  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><b><u><font size="2">2003</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap valign=bottom>
  <p><font size="2">Net premiums written</font></p>
  </td>
  <td width=23 nowrap valign=bottom>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><font size="2">1,080,963 </font> </p>
  </td>
  <td width=23 nowrap valign=bottom>

  </td>
  <td width=99 nowrap valign=bottom>
  <p align=right><font size="2">947,779 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net premiums earned</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">978,366 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">832,867 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net investment income</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">87,268 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">84,103 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Diversified insurance
  services revenue</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">78,274 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">69,272 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Total revenues </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">1,153,444 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">996,914 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap valign=bottom>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Operating income</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">80,095 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">37,061 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Capital gain, after-tax</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">4,635 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">5,442 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <div align=right>
  <hr size=1 width="95%" noshade color=gray align=right>
  </div>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <div align=right>
  <hr size=1 width="95%" noshade color=gray align=right>
  </div>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net income</font></p>
  </td>
  <td width=23 nowrap>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">84,730 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">42,503 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right>==========</p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right>==========</p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Statutory combined ratio</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">95.6%</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">101.6%</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">GAAP combined ratio</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">97.2%</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">103.2%</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Operating income per
  diluted share</font></p>
  </td>
  <td width=23 nowrap>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">2.56 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">1.35 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Net income per diluted
  share</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">2.70 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">1.54 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Weighted average diluted
  shares</font></p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">32,340 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">27,555 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>
  <p><font size="2">Book value per share</font></p>
  </td>
  <td width=23 nowrap>
  <p><font size="2">$</font></p>
  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">30.04 </font> </p>
  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>
  <p align=right><font size="2">26.32 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=371 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
  <td width=23 nowrap>

  </td>
  <td width=99 nowrap>

  </td>
 </tr>
 <tr>
  <td width=613 nowrap colspan=5>
  <p align=center><i><font size="2">*All amounts included in this release exclude
  inter-company transactions. </font> </i></p>
  </td>
 </tr>
</table>



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