THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Selective Insurance Group, Inc. (SIGI)

3/28/2006 Proxy Information

William M. Rue, a Selective director, is President, and owns more than 10% of the equity, of Rue Insurance, a general independent insurance agency. Rue Insurance is an appointed independent agent of Selective’s insurance subsidiaries and Selective HR Solutions, Inc., Selective’s human resources administration subsidiary (together with its subsidiaries, “Selective HR Solutions”), on terms and conditions similar to those of other Selective agents, including the right to participate in the Original Independent Agents Plan and the Agencies Stock Purchase Plan, if approved. Rue Insurance also places insurance for Selective’s business operations. Selective’s relationship with Rue Insurance has existed since 1928 and Selective expects that its relationship with Rue Insurance will continue in 2006. In 2005:

• Rue Insurance wrote insurance policies accounting for $10.2 million in direct written premiums with Selective’s insurance subsidiaries and Selective’s insurance subsidiaries paid Rue Insurance $1.9 million in commissions.

• Rue Insurance wrote contracts accounting for $64,000 in fees with Selective HR Solutions and Selective HR Solutions paid Rue Insurance $15,000 in commissions.

• Selective paid $0.2 million in reinsurance commissions to P.L. Services, LLC t/a Public Alliance Group Administrative Services, an insurance fund administrator of which Rue Insurance owns 20% and which places reinsurance through Selective Insurance Company of America (“SICA”), a Selective insurance subsidiary.

• Selective paid $0.6 million in premiums for insurance coverages that Rue Insurance wrote with non-Selective insurance companies for Selective’s own operations, for which Rue Insurance was paid commission pursuant to its agreements with those carriers.

The son of S. Griffin McClellan III, a Selective director, S. Griffin McClellan IV, is an Assistant Vice President of Selective’s subsidiary, SICA. In 2005, Mr. S. Griffin McClellan IV received $140,229 in cash compensation, primarily comprised of salary, bonus and tuition reimbursement, and a grant of 962 shares of restricted Selective common stock. Mr. S. Griffin McClellan IV’s compensation was determined in accordance with SICA’s standard employee compensation practices. Mr. S. Griffin McClellan III was a member of the Audit Committee in 2005. As of the 2006 Annual Meeting, he will no longer serve on that committee.

Indebtedness of Management

Certain loans were previously made by Selective to executives that are grandfathered under the Sarbanes-Oxley Act of 2002 and were authorized by the Board of Directors to encourage Selective stock ownership. On December 16, 1994, Selective made a loan to Jamie Ochiltree, III, now Selective’s Senior Executive Vice President, Insurance Operations, in the original principal amount of $197,000 at an annual interest rate of zero percent and a maturity date in 2005 to finance the exercise of non-qualified stock options to purchase Selective common stock granted on the same date. On August 7, 1998, Selective made a loan to Mr. Ochiltree in the original principal amount of $98,799 at an annual interest rate of 2.5% and a maturity date in 2009 to finance the purchase of Selective common stock in the open market. The largest aggregate amount of such indebtedness outstanding at any time during the fiscal year 2005 was $116,403. Mr. Ochiltree paid the 1994 loan in full as of February 2005. As of March 10, 2006, the outstanding principal amount under the 1998 loan was $43,471.

4/6/2005 Proxy Information

Transactions with Management and Others/Certain Business Relationships

William M. Rue, a Selective director, is President of and owns more than 10% of the equity of Rue Insurance., a general independent insurance agency ("Rue Agency"). The Rue Agency is an appointed independent agent of Selective's insurance subsidiaries and also places insurance for Selective's business operations. Selective's relationship with the Rue Agency has existed since 1928 and Selective expects that its relationship with the Rue Agency will continue in 2005. In 2004, Selective paid the Rue Agency:

o $1.8 million in commissions for insurance policies placed with Selective's insurance subsidiaries in the normal course of business.

o $13,000 in commissions for business placed with Selective's human resources administration subsidiary.

o $1.4 million in premiums for insurance coverages through non-Selective insurance companies for its own operations, from which the Rue Agency was paid commission pursuant to its agreements with those carriers.

o $0.2 million in reinsurance commissions to PL, LLC, an insurance fund administrator of which the Rue Agency owns 20% and which places reinsurance through a Selective insurance subsidiary.

Indebtedness of Management

The following are loans to executives that are grandfathered under the Sarbanes-Oxley Act of 2002 and were authorized by the Board of Directors to encourage Selective stock ownership:

o On December 16, 1994, Selective made a loan to Gregory E. Murphy, now Selective's Chairman, President, and Chief Executive Officer, in the original principal amount of $105,395 at an annual interest rate of zero percent and a maturity date in 2005 to finance the exercise of non-qualified Selective stock options granted on same date. Mr. Murphy paid the loan in full in April of 2004.

o On December 16, 1994, Selective made a loan to Jamie Ochiltree III, now Selective's Senior Executive Vice President, Insurance Operations, in the original principal amount of $197,000 at an annual interest rate of zero percent and a maturity date in 2005 to finance the exercise of non-qualified Selective stock options granted on same date. Mr. Ochiltree paid the loan in full as of February of 2005.

o On August 7, 1998, Selective made a loan to Gregory E. Murphy, now Selective's Chairman, President and Chief Executive Officer, in the original principal amount of $162,495 at an annual interest rate of 2.5% and a maturity date in 2009 to finance the purchase of Selective common stock in the open market. Mr. Murphy paid the loan in full in November of 2004.

o On August 7, 1998, Selective made a loan to Jamie Ochiltree III, now Selective's Senior Executive Vice President, Insurance Operations, in the original principal amount of $98,799 at an annual interest rate of 2.5% and a maturity date in 2009 to finance the purchase of Selective common stock in the open market. As of February 28, 2005, the outstanding principal amount under this loan was $50,387.

o On August 7, 1998, Selective made a loan to James W. Coleman, Jr., now Selective's Executive Vice President, Diversified Insurance Operations, in the original principal amount of $83,196 at an annual interest rate of 2.5% and a maturity date in 2009 to finance the purchase of Selective common stock in the open market. As of February 28, 2005, the outstanding principal amount under this loan was $42,430.

3/29/2004 Proxy Information

William M. Rue, a director of the Company, is President and owner of more than a 5% equity interest in Chas. E. Rue & Sons, Inc., a general insurance agency, which received $1.6 million in commissions during 2003 for insurance policies placed with the Company’s subsidiaries in the normal course of business. In addition, during 2003, the Company’s insurance subsidiaries purchased insurance coverages with premiums of $1.3 million through the agency. Chas. E. Rue & Sons, Inc. owns 20% of PL, LLC, which is an insurance fund administrator that places reinsurance through a subsidiary of the Company. In 2003, $0.1 million in reinsurance commissions were paid to PL, LLC. The foregoing relationship has existed during the past fiscal year, and the Company intends to continue its relationship with Chas. E. Rue & Sons, Inc.

On December 16, 1994, Messrs. Murphy and Ochiltree, each of whom is an executive officer of the Company, incurred certain indebtedness to the Company in connection with their respective exercises of nonqualified stock options granted on such date under the Company’s Stock Option Plan II. Such loans were made by the Company to such officers and certain other employees in order to encourage such employees to exercise their options and thus to align further their interests with those of the stockholders through greater stock ownership. The principal amounts of such loans to Messrs. Murphy and Ochiltree were $105,395 and $197,000, respectively. These loans bear no interest and are due in 2005. Principal amounts outstanding as of February 29, 2004 were $31,615 and $59,100 for Messrs. Murphy and Ochiltree, respectively. These loans are grandfathered under Sarbanes-Oxley Act.

On August 7, 1998, Messrs. Murphy, Coleman and Ochiltree incurred certain indebtedness to the Company in connection with the purchase of the Company’s Common Stock on the open market. Loans were made by the Company to senior management and certain other officers in order to encourage greater ownership of Common Stock. The principal amounts of such loans to Messrs. Murphy, Coleman and Ochiltree were $162,495, $83,196 and $98,799, respectively. These loans bear an annual interest rate of 2.5% and are due in 2009. Principal amounts outstanding as of February 29, 2004 were $94,247, $48,254 and $57,303 for Messrs. Murphy, Coleman and Ochiltree, respectively. These loans are grandfathered under Sarbanes-Oxley Act.

4/3/2003 Proxy information

William M. Rue, a director of the Company, is President and owner of more than a 5% equity interest in Chas. E. Rue & Sons, Inc., a general insurance agency, which received $1,316,514 in commissions during 2002 for insurance policies placed with the Company's subsidiaries. During 2002, the Company's insurance subsidiaries purchased insurance coverages with premiums of $1,081,053 through the agency. Chas. Rue & Sons, Inc. owns 20% of PL, LLC, which is an insurance fund administrator that places reinsurance through a subsidiary of the Company. In 2002, $427,489 in reinsurance commissions were paid to PL, LLC. The foregoing relationship has existed during the past fiscal year, and the Company intends to continue its relationship with Chas. E. Rue & Sons, Inc.

On December 16, 1994, Messrs. Murphy and Ochiltree, each of whom is an executive officer of the Company, incurred certain indebtedness to the Company in connection with their respective exercises of nonqualified stock options granted on such date under the Company's Stock Option Plan II. Such loans were made by the Company to such officers and certain other employees in order to encourage such employees to exercise their options and thus to align further their interests with those of the stockholders through greater stock ownership. The principal amounts of such loans to Messrs. Murphy and Ochiltree were $105,395 and $197,000, respectively. These loans bear no interest and are due in 2005. Principal amounts outstanding as of February 20, 2003 were $38,993 and $72,890, for Messrs. Murphy and Ochiltree, respectively.

On August 7, 1998, Messrs. Murphy, Coleman and Ochiltree incurred certain indebtedness to the Company in connection with the purchase of the Company's Common Stock on the open market. Loans were made by the Company to senior management and certain other officers in order to encourage greater ownership of Common Stock. The principal amounts of such loans to Messrs. Murphy, Coleman and Ochiltree were $162,495, $83,196 and $98,799, respectively. These loans bear an annual interest rate of 2.5% and are due in 2009. Principal amounts outstanding as of February 20, 2003 were $105,621, $54,077 and $64,219 for Messrs. Murphy, Coleman and Ochiltree, respectively.