SCHEDULE I

SELECTIVE INSURANCE GROUP, INC.

(Parent Corporation)

Balance Sheets



	December 31,
($ in thousands, except share amounts)	2012			2011
Assets:
Fixed maturity securities, available-for-sale – at fair value (amortized cost: $40,701 – 2012; $19,542 - 2011)	$	41,202		19,768
Short-term investments	26,787			33,948
Cash	210			722
Investment in subsidiaries	1,356,701			1,338,070
Current federal income tax	8,133			13,030
Deferred federal income tax	19,840			10,590
Other assets	9,695			12,823
Total assets	$	1,462,568		1,428,951

Liabilities:
Notes payable	$	249,387		249,360
Intercompany notes payable	103,443			107,131
Other liabilities	19,146			14,132
Total liabilities	$	371,976		370,623

Stockholders’ Equity:
Preferred stock at $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
Common stock of $2 par value per share
Authorized shares: 360,000,000
Issued: 98,194,224 – 2012; 97,246,711 – 2011	196,388			194,494
Additional paid-in capital	270,654			257,370
Retained earnings	1,125,154			1,116,319
Accumulated other comprehensive income	54,040			42,294
Treasury stock – at cost (shares: 43,030,776 – 2012; 42,836,201 – 2011)	(555,644		)	(552,149	)
Total stockholders’ equity	1,090,592			1,058,328
Total liabilities and stockholders’ equity	$	1,462,568		1,428,951

Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K.

SCHEDULE I (continued)

SELECTIVE INSURANCE GROUP, INC.

(Parent Corporation)

Statements of Income



	Year ended December 31,
($ in thousands)	2012			2011		2010
Revenues:
Dividends from subsidiaries	$	196,091		63,025		48,010
Net investment income earned	495			231		130
Other income	464			362		107
Total revenues	197,050			63,618		48,247

Expenses:
Interest expense	20,711			20,203		20,615
Other expenses	20,632			16,832		16,039
Total expenses	41,343			37,035		36,654

Income from continuing operations, before federal income tax	155,707			26,583		11,593

Federal income tax benefit:
Current	(4,602		)	(12,785	)	(11,645	)
Deferred	(9,347		)	490		(848	)
Total federal income tax benefit	(13,949		)	(12,295	)	(12,493	)

Net income from continuing operations before equity in undistributed income of subsidiaries	169,656			38,878		24,086
Equity in undistributed income of continuing subsidiaries, net of tax	—			—		46,660
Dividends in excess of continuing subsidiaries’ current year earnings	(131,693		)	(16,195	)	—

Net income from continuing operations	37,963			22,683		70,746

Loss on disposal of discontinued operations, net of tax	—			(650	)	(3,780	)

Net income	$	37,963		22,033		66,966

SCHEDULE I (continued)

SELECTIVE INSURANCE GROUP, INC.

(Parent Corporation)

Statements of Cash Flows



	Year ended December 31,
($ in thousands)	2012			2011			2010
Operating Activities:
Net income	$	37,963		22,033			66,966

Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries, net of tax	—			—			(46,660	)
Dividends in excess of subsidiaries’ current year income	131,693			16,195			—
Stock-based compensation expense	6,939			7,422			8,017
Loss on disposal of discontinued operations	—			650			3,780
Realized gain	(219		)	—		—	—
Amortization – other	450			229			149

Changes in assets and liabilities:
Increase (decrease) in accrued salaries and benefits	5,221			330			2,500
Decrease in net federal income taxes	4,897			742			4,261
Other, net	(7,014		)	(2,234	)		(1,287	)
Net adjustments	141,967			23,334			(29,240	)
Net cash provided by operating activities	179,930			45,367			37,726

Investing Activities:
Purchase of fixed maturity securities, available-for-sale	(148,604		)	(19,643	)		—
Redemption and maturities of fixed maturity securities, held-to-maturity	127,344			796			513
Purchase of short-term investments	(106,539		)	(128,378	)		(110,807	)
Sale of short-term investments	113,700			144,538			108,565
Capital contribution to subsidiaries	(139,122		)	—			—
Purchase of subsidiary, net of cash acquired	255			(51,728	)		—
Sale of subsidiary	751			1,152			978
Net cash used in investing activities	(152,215		)	(53,263	)		(751	)

Financing Activities:
Dividends to stockholders	(26,944		)	(26,513	)		(26,056	)
Acquisition of treasury stock	(3,495		)	(2,741	)		(1,686	)
Principal payment on notes payable	—			—			(12,300	)
Net proceeds from stock purchase and compensation plans	4,840			5,011			4,962
Excess tax benefits (expense) from share-based payment arrangements	1,060			(90	)		(744	)
Borrowings from subsidiaries	—			45,000			—
Principal payment on borrowings from subsidiaries	(3,688		)	(12,654	)		(623	)
Net cash (used in) provided by financing activities	(28,227		)	8,013			(36,447	)

Net (decrease) increase in cash	(512		)	117			528
Cash, beginning of year	722			605			77
Cash, end of year	$	210		722			605