Selective Reports Strong Results for the Third Quarter of 2017 - Net Income per Diluted Share of $0.79; Operating Income(1) per Diluted Share of $0.72; Dividend Increase of 13% to $0.18 per Share

BRANCHVILLE, N.J., Oct. 25, 2017

In the third quarter of 2017:

• Net premiums written grew 4%
• GAAP combined ratio was 94.3%
• Statutory combined ratio was 93.7%
• After-tax net investment income was $29.6 million
• Annualized return on average equity ("ROE") was 11.2% and operating ROE¹ was 10.1%

Selective Insurance Group, Inc. (NASDAQ: SIGI) today reported its financial results for the third quarter ended September 30, 2017.  Net income per diluted share was $0.79, up 20% compared to $0.66 a year ago, and operating income¹ per diluted share was $0.72, up 16% compared to $0.62 a year ago.

"We had strong results - a profitable 93.7% statutory combined ratio - in a quarter with record industry-wide catastrophe losses," said Gregory E. Murphy, Chairman and Chief Executive Officer.  "While Hurricanes Harvey and Irma added 2.5 points to our combined ratio, our overall financial results this quarter are a testament to the strength of our disciplined underwriting franchise and prudent risk appetite.  Net premiums written grew 4%, driven by renewal pure price increases of 2.7% in our standard commercial lines, and new standard lines business opportunities." 

Mr. Murphy continued, "For the first nine months of 2017, our annualized operating ROE was 11.0%.  Our state expansion efforts in Arizona and New Hampshire are on track.  We remain committed to maintaining underwriting discipline as we continue to seek growth opportunities.  We continue to invest in sophisticated underwriting tools and technologies to provide superior experiences to our customers and agents through our best-in-class employees, which should generate financial outperformance relative to the industry over time.  As we move into 2018, we are well positioned to produce strong operating returns on equity for several reasons:  (i)  Commercial Lines written renewal pure price increases for 2017 of 2.9%;  (ii) underwriting and claim improvements; and (iii) an after-tax fixed income portfolio new money yield of 2.2%, which has run at or above our sales and maturity rate."

Selective's Board of Directors declared a 13% increase in the quarterly cash dividend on common stock, to $0.18 per share, that is payable December 1, 2017, to stockholders of record as of November 15, 2017.