Selective Insurance Group Prices Offering of Junior Subordinated Notes

BRANCHVILLE, N.J., Sept. 20 /PRNewswire-FirstCall/ -- Selective Insurance Group, Inc. ("Selective"), (NASDAQ: SIGI) , today announced the pricing of its $100 million public offering of 7.5% Junior Subordinated Notes Due 2066 ("Notes").

The Notes have a 60-year final maturity and feature a fixed rate coupon of 7.5%. Interest on the Notes will be payable quarterly subject to Selective's right to defer interest payments for up to 10 years and other conditions. After five years the Notes will be callable by Selective at any time, in whole or in part, at their aggregate principal amount, together with any accrued and unpaid interest.

Selective expects to complete the offering on Sept. 25, 2006 subject to customary closing conditions. The Company intends to use the proceeds from the sale of the Notes for general corporate purposes. The joint book-running managers for the offering are Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wachovia Capital Markets, LLC.

Selective will apply to list the Notes on the New York Stock Exchange under the ticker symbol "SGZ." If approved for listing, trading is expected to commence within 30 days after the notes are issued.

This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale is unlawful.

Selective has filed a prospectus supplement relating to the Notes with the United States Securities and Exchange Commission ("SEC"). Copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained by contacting Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department, or by contacting Wachovia Capital Markets, LLC, 1525 W. Wt. Harris Blvd., Charlotte, NC 28262-8522, Attention: Syndicate Operations.

Selective Insurance Group, Inc. is a holding company for seven property and casualty insurance companies rated "A+" (Superior) by A.M. Best. Through independent agents, the insurance companies offer primary and alternative market insurance for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program. Other subsidiaries of the company provide claims, human resources and risk management services.

In this press release, Selective and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections regarding Selective's future operations and performance. Such statements are " forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995, which provides a safe harbor under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, for forward-looking statements. These forward-looking statements are often identified by 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 and their negatives. Selective and its management assume no obligation to update these forward-looking statements due to changes in underlying factors, new information, future developments or otherwise.

Selective and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in Selective's future performance. Factors that could cause Selective's actual results to differ materially from those indicated by such forward-looking statements, include, among other things, those discussed or identified from time to time in our public filings with the SEC and those associated with:

   * the frequency and severity of catastrophic events, including, but not
     limited to, hurricanes, tornadoes, windstorms, earthquakes, hail,
     severe winter weather, fires, explosions and terrorism;
   * adverse economic, market, regulatory, legal or judicial conditions;
   * the concentration of our business in a number of Eastern Region states;
   * the adequacy of our loss reserves and loss expense reserves;
   * the cost and availability of reinsurance;
   * our ability to collect on reinsurance and the solvency of our
     reinsurers;
   * uncertainties related to insurance premium rate increases and business
     retention;
   * 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;
   * our ability to maintain favorable ratings from rating agencies,
     including A.M. Best, S&P, Moody's and Fitch;
   * fluctuations in interest rates and the performance of the financial
     markets;
   * our entry into new markets and businesses; and
   * other risks and uncertainties we identify in filings with the SEC,
     including, but not limited to, our Annual Report on Form 10-K.

Selective's SEC filings can be accessed through the Investors and Corporate Governance sections of Selective's website, http://www.selective.com/, or through the SEC's EDGAR Database at http://www.sec.gov/ (Selective EDGAR CIK No. 0000230557).