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OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned a financial strength rating of A (Excellent) and issuer credit ratings of aa+a to Selective Casualty Insurance Company (SCIC) and Selective Fire & Casualty Insurance Company (SFCIC). The outlook assigned to all ratings is stable. Both companies are headquartered in Branchville, NJ.

"The Treatment of Terrorism Risk in the Rating Evaluation"

SCIC and SFCIC are newly formed subsidiaries of Selective Insurance Group, Inc. (NASDAQ: SIGI) and were established to facilitate a more flexible tiered pricing structure in New Jersey.

The ratings assigned to SCIC and SFCIC reflect the explicit support provided by Selective Insurance Company of America in the form of anintercompany pooling agreement, which became effective July 1, 2012. This pooling agreement was executed following the receipt of regulatory approval.

The methodology used in determining these ratings is Bestas Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestas rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: aRisk Management and the Rating Process for Insurance Companiesa; aInsurance Holding Company and Debt Ratingsa; aRating New Company Formationsa; aCatastrophe Analysis in A.M. Bestas Ratingsa; aThe Treatment of Terrorism Risk in the Rating Evaluationa; aUnderstanding BCAR for Property/Casualty Insurersa; and aRating Members of Insurance Groups.a Bestas Credit Rating Methodology can be found at [ www.ambest.com/ratings/methodology ].

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].

Copyright 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.