Selective Insurance Group, Inc.

“There has been a trend towards increased consolidation within our distribution channel, which increases competition among fewer distributors and increases the influence each distribution partner has on our business.”

“There has been a trend towards increased levels of consolidation of these distribution partners in the marketplace, which increases competition among fewer distributors.”

“in 2011, we began offering excess and surplus lines (“E&S”) insurance products as the result of the following acquisition activity”

“Currently, no one distribution partner is responsible for 10% or more of our combined insurance operations' premium.”

“We market and sell our insurance products through distribution partners who are not our employees. We believe that these partners will remain a significant force in overall insurance industry premium production because they can provide customers with a wider choice of insurance products than if they represented only one insurer. That, however, creates competition in our distribution channel and we must market our products and services to our distribution partners before they sell them to our mutual customers. Additionally, there has been a trend towards increased levels of consolidation of these distribution partners in the marketplace, which increases competition among fewer distributors. Our Standard Personal Lines production is further limited by the fact that independent retail insurance agencies only write approximately 35% of this business in the United States. Our financial condition and results of operations are tied to the successful marketing and sales efforts of our products by our distribution partners. In addition, under insurance laws and regulations and common law, we potentially can be held liable for business practices or actions taken by our distribution partners.”