<SEC-DOCUMENT>0000230557-15-000009.txt : 20150810
<SEC-HEADER>0000230557-15-000009.hdr.sgml : 20150810
<ACCEPTANCE-DATETIME>20150501150755
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000230557-15-000009
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20150501

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:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		40 WANTAGE AVENUE
		CITY:			BRANCHVILLE
		STATE:			NJ
		ZIP:			07890
		BUSINESS PHONE:		9739483000

	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>CORRESP
<SEQUENCE>1
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		<title>SEC Comment Letter</title>
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<a name="s067fb78b8e644e46ab36cac7ea91c092"></a><div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><img src="selectivelogo.jpg" style="height:56px;width:212px;"><font style="font-family:inherit;font-size:10pt;">&#32;&#32;&#32;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:left;padding-left:84px;text-indent:288px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;&#32;Dale A. Thatcher</font></div><div style="line-height:120%;padding-left:64px;text-indent:336px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-style:italic;">Executive Vice President and Chief Financial Officer</font></div><div style="line-height:120%;padding-left:64px;text-indent:336px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Selective Insurance Group, Inc.</font></div><div style="line-height:120%;padding-left:64px;text-indent:336px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">40 Wantage Avenue</font></div><div style="line-height:120%;padding-left:64px;text-indent:336px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Branchville, New Jersey 07890</font></div><div style="line-height:120%;padding-left:64px;text-indent:336px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Tel:  (973) 948-1774</font></div><div style="line-height:120%;padding-left:64px;text-indent:336px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Fax:  (973) 948-0282</font></div><div style="line-height:120%;padding-left:64px;text-indent:336px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">E-mail: dale.thatcher@selective.com</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">May 1, 2015</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Jim B. Rosenberg, Senior Assistant Chief Accountant</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">United States Securities and Exchange Commission</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">100 F Street, N.E.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Mail Stop 4720</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Washington, D.C. 20549</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;padding-left:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">RE:</font><font style="font-family:inherit;font-size:11pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Selective Insurance Group, Inc.</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Form 10-K for the Fiscal Year Ended December 31, 2014</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Filed February 26, 2015</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Definitive Proxy Statement on Schedule 14A</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Filed March 24, 2015</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"></font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">File No. 1-33067</font></div><div style="line-height:120%;text-align:left;padding-left:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Dear Mr. Rosenberg:</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Thank you for your letter of Thursday, April 23, 2015.  Our responses follow your comments, which are set forth in bold type.  The capitalized terms used but not defined in this letter have the meanings ascribed to them in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.  </font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Form 10-K for Fiscal Year Ended December 31, 2014</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">Notes to Consolidated Financial Statements</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">Note 2. Summary of Significant Accounting Policies</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">(e) Fair Value of Financial Instruments, page 90</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">1.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Refer to your disclosure of fixed income securities herein and in Notes 5 and 7.  It is unclear to us why further disaggregation of your fixed income securities is not warranted.  Please provide us analyses under ASC 320-10-50-1B and ASC 820-10-50-2B supporting your determination of &#8220;major security types&#8221; and &#8220;classes&#8221; of securities that you present.  In this regard, tell us your basis for the disaggregation of fixed income securities in the table on page 75 under &#8220;Credit Risk.&#8221;</font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">SELECTIVE RESPONSE:</font></div><div style="line-height:120%;text-align:left;padding-left:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The identification of the &#8220;major security types&#8221; and &#8220;classes&#8221; for disclosure mirrors our process of establishing the Company&#8217;s investment policy.  The investment policy is reviewed and approved by the Finance Committee of the SIGI Board of Directors and the Management Investment Committee.  </font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="s067fb78b8e644e46ab36cac7ea91c092"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Jim B. Rosenberg, Senior Assistant Chief Accountant</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States Securities and Exchange Commission</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">May 1, 2015</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Page 2</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">In constructing the Company&#8217;s portfolio, the Finance Committee has approved primary parameters that focus on the following: asset allocation, asset quality, duration, liquidity, maturities, and taxation.  In determining the proper asset allocations and related percentage investment ranges, emphasis is placed on the economic characteristics of the various types of investment securities available to us in the marketplace.  The major security types disclosed in Notes 5 and 7 mirror those that are established and outlined within our investment policy.  The only exception to this practice is the disclosure of &#8220;foreign governments.&#8221;  These securities are required to be separately disclosed pursuant to the Financial Services industry specific guidance in ASC 942-320-50-2.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Within the Company&#8217;s asset allocation policy ranges by major security type, the company also establishes </font><font style="font-family:inherit;font-size:11pt;font-style:italic;">maximum</font><font style="font-family:inherit;font-size:11pt;">&#32;thresholds, which focus on credit quality and geographic concentrations as well as issuer concentrations.  These secondary thresholds provide a basis for our expanded discussion and analysis of credit risk within Item 7A. &#8220;Quantitative and Qualitative Disclosures About Market Risk.&#8221; As is illustrated on page 75 through 78, the subcategories within each major security type currently do not show any material deviation from that of the overall credit quality of the major security type itself.  Furthermore, no sector or geographic concentrations of concern are identified within the discussion or tables on pages 75 through 78.  We believe that informing the investor at the same level of aggregation as we inform our managers and the Board provides the most significant insight into our operations.  In addition, since no additional material insight was obtained at a lower level of detail, we did not believe expanding the major security types within the notes to the financial statements was warranted and would only create redundancy and potential confusion.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">2.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Refer to your discussion of valuation techniques used to fair value your fixed income securities on page 91.  Please provide us, for each &#8220;class&#8221; (see comment 1 above) of Level 2 and Level 3 fixed income securities, the valuation technique(s) and inputs used in your fair value measurement.  Refer to ASC 820-10-50-2bbb.</font></div></td></tr></table><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">SELECTIVE RESPONSE:</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Pursuant to ASC 820-10-50-2bbb, we should have clearly indicated that the paragraph contained on page 91 is applicable to all of our seven major security types related to fixed income securities valued with Level 2 inputs.  For your convenience, we are providing that paragraph below updated to reflect its applicability.  For purposes of clarity, we have briefly expanded our discussion to reflect the more significant pricing model inputs.  Additional language from that which was originally included on page 91 is italicized.  In future Form 10-K filings, we will include this disclosure:</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;padding-left:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;">For our U.S. government and government agencies, foreign government obligations, obligations of states and political subdivisions, corporate securities, and structured securities, which include ABS, CMBS, and RMBS whose fair value measurement is based on Level 2 inputs</font><font style="font-family:inherit;font-size:11pt;">, we utilize a market approach, using primarily matrix pricing models prepared by external pricing services.  Matrix pricing models use mathematical techniques to value debt securities by relying on the securities relationship to other benchmark quoted securities, and not relying exclusively on quoted prices for specific securities, as the specific securities are not always frequently traded.  </font><font style="font-family:inherit;font-size:11pt;font-style:italic;">Management, with the assistance of our pricing service evaluates each asset class based on relevant market information, relevant credit information, perceived market movements, and sector news.  The market inputs utilized in the pricing evaluation, include:  benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events.  The extent of use of each market input depends on the asset class and the market conditions.  Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant.  For some securities, additional inputs may be necessary.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="s067fb78b8e644e46ab36cac7ea91c092"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Jim B. Rosenberg, Senior Assistant Chief Accountant</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States Securities and Exchange Commission</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">May 1, 2015</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Page 3</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:left;padding-left:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">As a matter of policy, we consistently use one pricing service as our primary source and secondary pricing services if prices are not available from the primary pricing service.  In conjunction with our external investment portfolio managers, fixed income securities portfolio pricing is reviewed for reasonableness in the following ways:  (i) comparing our pricing to other third-party pricing services as well as benchmark indexed pricing; (ii) comparing positions traded directly by the external investment portfolio managers to prices received from the third-party pricing services; (iii) comparing market value fluctuations between months for reasonableness; and (iv) reviewing stale prices.  If further analysis is needed, a challenge is sent to the pricing service for review and confirmation of the price.  </font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">In our opinion, to disclose a lower level of granularity with regard to each major security type would introduce investment concepts that are unfamiliar to the average reader.  </font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Regarding Level 3 fixed income securities, we currently do not hold any within our portfolio.  However, if we were unable to obtain Level 1 or Level 2 pricing, we would typically use non-binding broker quotes provided by our service provider.  These are prices from various broker/dealers that use bid or ask prices, or benchmarks to indices, in measuring the fair value of a security.  Typically, brokers do not disclose to us the quantitative unobservable inputs associated with their non-binding quotes and therefore, we would review these quotes for reasonableness, but would either not be able to, or be limited in, disclosing the techniques and inputs used in developing the fair value as discussed in ASC 820-10-50-2bbb.  If we were unable to obtain non-binding broker quotes, we would be required to produce an estimate of fair value using some of the same methodologies as our pricing service, but we would have to make assumptions for any market-based inputs that were unavailable due to market conditions. </font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">(j) Deferred Policy Acquisition Costs, page 92</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">3.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">You disclose that premium deficiency testing is required to be performed at the level an entity acquires, service and measures the profitability of its insurance contracts.  In your December 15, 2009 response to comment 2 you indicated that none of the roles in your servicing contracts were delineated by lines of business.  Given the historical combined ratios of your workers compensation line of business being greater than 100% as disclosed on page 55, that your workers compensation claims handling is centralized in Charlotte, North Carolina and the existence of your workers compensation strategic case management unit as disclosed on page 13, please explain to us how your workers compensation contract servicing is not different from other lines in your Standard Commercial Lines segment. </font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:24px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">SELECTIVE RESPONSE:</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Despite the fact that some of our claims handling roles have been strategically positioned to handle only workers compensation claims, we continue to analyze premium deficiency testing in a manner that is directly correlated with the way our chief operating decision makers measure the profitability of our insurance operations:  Standard Commercial Lines, Standard Personal Lines, and Excess and Surplus Lines.  As disclosed in our notes to the financial statements, we give consideration to the process of acquiring, servicing, and measuring the profitability of our insurance contracts; but as a matrix organization we applied more weight to the way we acquire business and measure profitability on a GAAP reporting basis.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">To that end, we believe it is important to recognize that we market our standard business on a full account basis and rarely write an individual line of business for a particular customer.  The average commercial lines customer has three separate policies from us, one of which may be workers compensation.  In addition, our Agency Management Specialists continue to be a central focus of our field model, with responsibility for managing the growth and profitability of their territories and underwriting new Standard Lines Commercial accounts as opposed to individual lines of business.</font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="s067fb78b8e644e46ab36cac7ea91c092"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Jim B. Rosenberg, Senior Assistant Chief Accountant</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States Securities and Exchange Commission</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">May 1, 2015</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Page 4</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">As we cited in our letter on December 15, 2009, we do price accounts on a granular level, but this is largely a function of regulatory requirements and the competitive landscape within which we operate.  Pricing and measuring profitability at a more granular level allows us to fulfill our statutory regulatory reporting requirements.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">Note 19. Litigation, page 136</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">4.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">You disclose that from time to time you are involved in legal actions (such as putative class actions and other individual actions in which extra-contractual damages, punitive damages, or penalties are sought) that could have a material adverse effect on your consolidated results of operations or cash flows for a particular quarterly or annual period.  It is unclear from this disclosure whether any such legal actions currently exist under which it is at least reasonably possible that a loss has been incurred.  Please provide us proposed revised disclosure to be included in future periodic reports that clarifies whether any such legal actions are underway.  To the extent there are, please disclose the nature of the contingency and an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made.  Please see ASC 450-20-50-1 through 50-4.</font></div></td></tr></table><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">SELECTIVE RESPONSE:</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">We do not believe that the Company was involved in any legal action that could have a material adverse effect on our consolidated results of operations or cash flows as of December 31, 2014.  In future Form 10-Q and Form 10-K filings, we will include a statement as to whether we are currently involved in any such legal actions.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">Definitive Proxy Statement of Schedule 14A</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">Employment Agreements and Potential Payments Upon Termination or Change in Control, page 51</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">5.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">We note your disclosure that you have entered into an employment agreement with your Executive Vice President &amp; Chief Actuary, Mr. Zaleski, but this agreement has not been filed as an exhibit to your annual report nor has it been incorporated by reference from another filing.  Please file this agreement as an exhibit to your next quarterly report on Form 10-Q and incorporate it by reference to your 2016 annual report. </font></div></td></tr></table><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">SELECTIVE RESPONSE:</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The Employment Agreement between Selective Insurance Company of America and Ronald J. Zaleski, dated as of December 23, 2008, was filed as Exhibit 10.23i of the Company&#8217;s Annual Report on Form 10-K for the year ended December 31, 2008.  In response to your comment, we listed this agreement in the Exhibit List to the Company&#8217;s Form 10-Q filed on April 30, 2015, and we will include it on the Exhibit List to the Company&#8217;s Annual Report on Form 10-K for the year ended December 31, 2015.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="s067fb78b8e644e46ab36cac7ea91c092"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Jim B. Rosenberg, Senior Assistant Chief Accountant</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States Securities and Exchange Commission</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">May 1, 2015</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Page 5</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The Company acknowledges that:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The Company is responsible for the adequacy and accuracy of the disclosure in the filings;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The Company may not assert the staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.</font></div></td></tr></table><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Should you have any questions, please call me at (973) 948-1774.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Very truly yours,</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;text-decoration:underline;">/s/ Dale A. Thatcher</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Dale A. Thatcher</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Executive Vice President and Chief Financial Officer </font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Selective Insurance Group, Inc.</font></div><div style="line-height:120%;text-align:left;padding-left:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div>	</body>
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