ip2008.htm

Exhibit 99.1

Selective Insurance Group, Inc.
Investor Presentation
February 2008

Certain statements in this report, including information incorporated by reference, are “forward-looking statements”
as that term is defined in the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a
safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking
statements. These statements relate to our intentions, beliefs, projections, estimations or forecasts of future
events or our future financial performance and involve known and unknown risks, uncertainties and other factors
that may cause our or our industry's actual results, levels of activity, or performance to be materially different from
those expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking
statements by use of words such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "target,"
"project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely" or "continue" or other
comparable terminology. These statements are only predictions, and we can give no assurance that such
expectations will prove to be correct. We undertake no obligation, other than as may be required under the
federal securities laws, to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

Factors, that could cause our actual results to differ materially from those projected, forecasted or estimated by us
in forward-looking statements are discussed in further detail in Selective’s public filings with the United States
Securities and Exchange Commission. These risk factors may not be exhaustive. We operate in a continually
changing business environment, and new risk factors emerge from time-to-time. We can neither predict such new
risk factors nor can we assess the impact, if any, of such new risk factors on our businesses or the extent to which
any factor or combination of factors may cause actual results to differ materially from those expressed or implied
in any forward-looking statements in this report. In light of these risks, uncertainties and assumptions, the forward
-looking events discussed in this report might not occur.

Forward Looking Statement

Financial Strength

• Strong market position

– 21-state super-regional

– $1.6B NPW

• 87% commercial lines

• 13% personal lines

• High-Tech, High-Touch™ Business
Model

– Industry-leading technology

– Distribution partner with 876
independent agents

– 350 field personnel

• Excellent strategic execution

• History of financial strength

“A+” A.M. Best rated for 46 years

Selective Profile

Reserving Practices

• Strong actuarial department

– 7 fellows, 4 associates

– Responsible for budgeting and planning

• Detailed actuarial reviews quarterly

• Monthly and quarterly controls and
monitoring

• Minimal environmental & asbestos exposure

• Carried reserves at 57th percentile of range

($ in 000s)

Insurance Operations Productivity

($ in 000s)

Insurance Operations Productivity - Proforma

Ongoing Underwriting Improvements

• Safety management plan

– Increase productivity
through new system

– Increase % of accounts on
service plans

• Catastrophe management
strategy

– Average annual loss - more
granular pricing of property
premium to exposure

Percentages are net of tax, reinsurance & reinstatement premium

RMS Data as of 6/30/07; Equity data as of 12/31/07

% of Equity at Risk

CAT cover: $310M in excess of $40M

RMS Model

Natural Catastrophe Management

12.5% ROE generated by investment portfolio

$3.7B Invested Assets
as of Dec. 31, 2007

Conservative Investment Portfolio

No downgrades on structured securities to date

No Significant Sub-Prime Exposure

18.9%

26.0%

82.8%

Annual Earnings

($ in Millions)

Dividends paid

Share Repurchase

% of Capital Returned to Shareholders

116.0%

25.2%

Proactive Capital Management

What Drives Success with Agents?

Selective Delivers:

Agents Want Superior Service

• Field model with front-line decision making authority

– 100 Agency Management Specialists (AMS)

– 75 Safety Management Specialists (SMS)

• Competitive products and programs though Strategic
Business Units

• Granular pricing capability through predictive modeling
capabilities

• Superior claims service

– 150 Claims Management Specialists (CMS)

($ in millions)

Commercial Lines New Business

One third of agent business is generated through xSELerate

Selective Delivers:

2007
Commercial
Lines
Interface
Carrier of the
Year Award
from

ASCnet

2007

Quantum
Award from
the AMS Users’
Group

2007

Celent

Model Carrier
Award for
Agency
Interface
Technology

Agents Want Easy to Use Technology

• Ability to seamlessly transfer underwriting data with first-to-market,
award winning

Selective Delivers:

Average premium written per business day

($ in thousands)

Agents Want Easy to Use Technology

• Easy to use small business system One & Done with 440+
classes of business

Selective Delivers:

Agents Want Carriers Who Understand Their Needs

• Access to management team

• Agent development programs

– Hiring producers through CIB program; 65 hired in 2007

– Sales training for producers; 300 trained in 2007

• Customer-focused 24 x 7 capabilities

– On-line bill pay services enrollment up 135% in 2007

– Steady usage from 7:00 a.m. - 10:00 p.m.

• Providing pre-qualified sales leads

– Agency sales meetings

Selective Delivers:

Agents Want Profitability

• Information and analytics delivered through Knowledge
Management

• Pricing precision through predictive modeling

– Commercial lines models: workers compensation, BOP, CPP and
commercial auto

– MATRIX® for personal lines: auto and homeowners

The Power of Predictive Modeling

• Commercial lines business performance

Cumulative Direct Premiums ($ millions)

2003

2007

500

1,000

1,500

Agent’s Profitability 2003 vs. 2007

Goal: 7 point combined ratio improvement by year-end 2007

Note: Booked accident year combined
ratios

7.8 points

Workers Compensation Success

Personal Lines Improvement Plan

• Competitive pricing through MATRIX®

– Auto rolled out Aug 2006

– Homeowners rollout Jan 2008

• Price increases totaling

– Auto +8.7%

– Homeowners +5%

• Shift in mix of business

• Property results

– Inspection program in key markets

Agents rate us 8.9 for overall service levels for second consecutive year

Jerry Niewiek, Principal

Berends, Hendricks, Stuit Insurance

Grandville, Michigan

[Video Available @ www.selective.com]

Agents Get What they Want from Selective

Actionable
Information

High-Tech,

High-Touch

Profitable Growth

The Formula for Profitable Growth

Long-Term Shareholder Value Creation