As a corporate member of society, Selective considers these values integral to our business: serving our customers faithfully, helping our employees succeed professionally, improving the natural environment and doing all we can to uplift our communities.These are the ideals of citizenship we strive to live by every day.

Our actions embody these ideals. Our front-line employees routinely earn praise from customers and agents. Last year, we increased our commitment to developing our employees, expanding the number of training programs by nearly 70 percent. At our headquarters, we consumed less paper and recycled more commingled materials than in past years.

Nearly 10 percent of our employees took a paid day off from their jobs to volunteer at the charities of their choice. Many more carved countless hours out of their busy lives to serve non-profit organizations in their off hours. These employees represent the essence of Selective – the desire to leave society better than we found it.

I invite you to read our Corporate Social Responsibility report. It outlines the efforts of our company to create an environment where people feel empowered to bring about positive change. And it highlights the accomplishments of our employees as they help build communities where more people can share in the dream of better tomorrows.

Gregory E. Murphy

Chairman and Chief Executive Officer

Message from the Chairman and Chief Executive Officer

Selective inSurance company of america

Co r p o r a t e S o c i a l R e s p o n s i b i l i t y R e p o r t

Building Better Tomorrows

2013 20132013 2013

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COMMUNITY SUPPORT

Employee Volunteer Grants 1%

President’s Club Matching Grants1 10%

Medical Services 21%

Community Service 55%

Emergency Services 6%

Education 8%

The Selective Insurance Group Foundation Charitable Donations 2013

The Foundation donated to approximately

170 organizations, including:

The Marine Corps Scholarship Foundation, the nation’s oldest and largest provider of need-based scholarships to military children

Various land and nature conservancies, including a group dedicated to preserving water quality in the New Jersey Highlands

Local fire, police and rescue organizations1 Through the President’s Club Matching Grant Program, the Selective Insurance Group Foundation matches donations by agents to eligible charities in their communities.2 The Foundation pays grants to certain non-profit organizations where company employees volunteer. Grant amounts are proportional to time volunteered.

Selective Insurance Group Foundation Charitable Giving

No. of Donations

+6%

Employee Volunteerism

(using the company’s policy of providing a paid day off for volunteering)

No. of Employees

197 Hours Donated Increase over 2012

1,478 24%

Grants to Employee Volunteer Charities2 Increase over 2012

12 grants 33%

The Selective Insurance Group Foundation offers grants to not-for-profit, 501(c)(3) organizations that provide health and human services, promote civic responsibility and support home, auto and business safety. If you would like to apply for a grant, see the last page of this report.

3

Special Olympics Fun Run

Several New Jersey Region employees and their family members participated in the 29th annual New Jersey Young Insurance Professionals (NJYIP) Fun Run benefiting the Special Olympics of New Jersey.

The event raised more than $115,000, of which $9,065 was contributed by “Team Selective.” NJYIP has been working on behalf of the Special Olympics for nearly 30 years. As a result, thousands of Special Olympics athletes have had opportunities to train and take part in various events. Selective has an impressive history of participating in the Fun Run and plans to continue its involvement.

Steve’s Coats for Kids

Employees in the Southern Region conducted a winter coat drive for “Steve’s Coats for Kids,” an organization that donates coats to needy children in Charlotte, NC.

The organization was started by Steve Udelson, chief meteorologist of a local television station. Through donations by viewers and partnerships with crisis assistance organizations and the Charlotte Fire Department, the drive has collected over 70,000 coats in the last nine years. Pictured are some of the coats collected from the region.

COMMUNITY SUPPORT

25-Year Club & Meals on Wheels

In lieu of receiving a gift at their annual luncheon, members of Selective’s 25-Year Club donated the $4,000 allotted for the gift to Meals On Wheels. Selective Chairman and Chief Executive Officer Greg Murphy made the donation on behalf of the club.

“Meals On Wheels provides a great service to the people in our community, especially senior citizens,” Mr. Murphy said. “We hope this donation will help them replenish their food supplies, as demand has been increasing over the last several years due to tough economic times.”

Examples of charitable causes Selective employees supported in 2013

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• The American Red Cross held two blood drives in our office during the year, providing individuals in and around our community with opportunities to donate blood.

• We hosted more than 200 seniors at the annual Older Americans Day event sponsored by the Sussex County Division of Senior Services.

• SCARC held its Roundtable, an annual Behavioral Sciences conference for education and training of social workers.

• We helped the Sussex County Arts and Heritage Council sell its members’ art and raise funds by partnering with the council to display the art.

• The Sussex County TRIAD held a law enforcement seminar for seniors.

• We hosted the Sussex County Department of Human Services’ Caregivers Expo, a forum of educational programs that assist seniors and caregivers.

COMMUNITY SUPPORTScholarship

College Scholarship for Employee’s Child

Selective annually awards a scholarship of $4,000 per year for up to four years toward the undergraduate education of any immediate family member of an employee. The 2013 winner, Alexander Testino, was chosen from a field of 37 candidates.

Below, left to right are Kimberly Burnett, executive vice president, Human Resources; Alexander’s mother, Linda Testino, Selective Flood Department; Alexander Testino; Greg Murphy, chairman and CEO; and Alexander’s father, Anthony Testino.

Local Citizenship

We host several events for local non-profit organizations in our headquarters building in Branchville, NJ, providing free meals and facilities support. It’s one more way we use our resources to assist our communities.

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Employee Breakdown by Gender

Parent Friendly Policies

Low Employee Turnover

2,057 employees

784 employees in Branchville, NJ,

headquarters

Company Policies That Favor Work-Life Balance

Paid time off

Tuition assistance

Adoption assistance

Employee assistance programs

Wide range of flexible work arrangements through SELECT Hours

EMPLOYEES & PARTNERS

Women

58%

Men

42%

Our employees are our greatest asset. We strive to create a workplace that respects their unique strengths as it fosters teamwork, learning and productivity. Celebrating diversity is part of our culture; we recognize that when

employees with diverse cultural backgrounds, ideas and experiences work side by side, we are all enriched.

22state footprint

Average Tenure of Employees:

10 years, 1 month

80%Percentage of Employees Returning After

Taking Maternity/Paternity Leave

2.5

2.0

1.5

1.0

0.5

0.0

1.2%

2.2%

Finance & Insurance IndustrySelective

Source for industry data: Bureau of Labor Statistics, U.S. Dept. of Labor

Employee Separations as a Percentage of Total Employment

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Opportunities for Employee

Learning and Growth

Increase in Training Programs from 2012 to 2013

+69%

EMPLOYEES & PARTNERS

Management Skills Training

Professional Development

Leadership Development

2013 Highlights

• 22 program offerings - an increase of 69% over 2012 - attended by 425 employees. 25% of employees were in leadership positions.

• Introduced Development Resource Guide, a tool for all employees and their managers to accelerate the development of Selective’s leadership competencies.

• Introduced “Why Should Anyone Be Led By You?,” a development program for leaders.

7

EMPLOYEES & PARTNERSEmployee Wellness Programs

Health screenings

Health education fair

Flu shots provided on-site at all locations

“Health Advocate” service provided free to employees and their spouses, dependent

children, parents and parents-in-law

Maximum annual reimbursement of $200 for participating in a Weight Watchers program

of 12 or more weeks; 50% upfront and 50% upon meeting goal

Full coverage of smoking cessation prescriptions and products for

employees and spouses

Free on-site gym membership for Branchville employees and spouses/partners;

gym membership fee reimbursement for remote employees

Low-calorie, low-fat, low-cholesterol dining options in company cafeteria and monthly

healthy cooking demonstrations (using seasonal vegetables)

Wellness discounts for employees and their spouses/domestic partners enrolled in

company’s medical plan, including:

Fitness

Weight management

Massage therapy

Acupuncture

Chiropractic

Nutrition services

Health and wellness products

Vision care

Hearing care

Branchville Fitness Center Memberships

56% of eligible employees

are members.

Remote Employees’ Memberships in Local

Health Clubs

25% of eligible remote employees

receive reimbursement of membership dues.

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EMPLOYEES & PARTNERSEmployee Diversity & Inclusion

Selective’s Diversity & Inclusion Council fosters an environment where all employees are encouraged to share experiences and ideas that contribute to Selective’s organizational goals. To achieve this objective, the Council sponsors programs that develop leaders and build a culture that empowers our people to achieve their fullest potential by sharing their diverse backgrounds, skills and ideas.

Achievements of Diversity & Inclusion Council

• Provided educational opportunities for all employees on diversity topics.

• Presented educational sessions to Claims employees at the Claims conference.

• Celebrated Black History month, Women’s History Month, Hispanic Heritage Month, and other cultural events.

• As members of the Independent Insurance Brokers & Agents of America’s Diversity Task Force, developed strategies to recruit people of diverse backgrounds to pursue a career in the insurance industry and build strategic alliances with other insurance organizations that represent diverse agents.

Supplier Diversity

Growth in Purchases from Diverse Suppliers

Representing

50%of all company

purchases

$99 million

worth of products and services

Purchased from

646 diverse suppliers

15

31

84

99

13

20

42

50

120

100

80

60

40

20

0

60%

50%

40%

30%

20%

10%

0% 2010 2011 2012 2013

Purchases, $ million Percentage of Total Co. Purchases

9

Recycling

Pounds of paper recycled

234,200 lbs.

Our social contract includes preserving our environment for future generations. We treat the earth with a light touch, taking every opportunity to reduce our use of natural resources and reuse or recycle the products that we consume. The result is a smaller carbon footprint, lower operating costs, and a better environment for us all.

Reducing Paper Use

Self-Service Options Offered to Customers

Mobile app for iPhone® and AndroidTM plus mobile website

Customer portal for payments, answers to policy questions, and view/print payment or policy information

Automated payments by phone

Paperless Business Transactions Offered to Customers

Certificates of Insurance

Claim filing

Auto ID cards

Bill payments

Reducing Paper Use

Benefits from Claims Content Management System

Claim documents and mail are online

Significant reduction of printed documents for sharing with other departments

E-fax system replaced paper faxes

Paperless claim files

Fewer envelopes used due to reduced mailing

Cardboard box savings as fewer files are archived

Increased Electronic Payments

Percent of Bill Payments Made Electronically

59%

Increase over 2012

9%

ENVIRONMENTAL PRESERVATION

Pounds of cardboard, aluminum, glass and plastic recycled

62,760 lbs.

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Total Paper Purchased: 22,110 lbs.

Paper Purchased Annually at Headquarters

Environmental Benefit of Recycled Paper Purchases

Greenhouse gas emissions reduced (CO2 equivalents)

9,259 lbs.Water saved

44,586 gallonsTrees saved

98 treesWood resources saved

27,822 lbs.Total energy (BTUs) saved

30,855,427 BTUsEnergy equivalent to oil saved

220 gallonsEnergy equivalent to electricity saved

8,786 kWh

Total post-consumer recycled content:

7,528 lbs.

Virgin paper:

14,582 lbs.

50,000

40,000

30,000

20,000

10,000

0 2009 2010 2011 2012 2013

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

ENVIRONMENTAL PRESERVATIONP

OU

ND

S

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ENVIRONMENTAL PRESERVATION

Environmental Protection

Non-toxic, non-caustic cleaning products used in offices and cafeteria

Low or no emissions of volatile organic compounds from paints and carpets

Landscaping with indigenous plants using chemical-free fertilizer

Indoor air quality maintained through regular inspections and filter changes

Water Conservation

Automatic faucets and flushometers added to restrooms

No lawn sprinklers

Conveyor dishwasher in cafeteria

at Branchville, NJ, Headquarters

Energy Conservation

Energy-efficient office machines and heating/ventilation/air conditioning units

More energy-efficient light fixtures installed

Lighting shutoff in selected areas during periods of low usage

Electricity meters installed in data center to monitor power usage

Variable frequency drives installed on cooling tower motors to prolong life of motors

Regular preventive maintenance performed on company fleet to optimize engine performance and fuel consumption

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w w w . S e l e c t i v e . c o m

Selective Insurance Company of America

40 Wantage Avenue

Branchville, New Jersey 07890

To apply for a grant from

The Selective Insurance Group Foundation

for a non-profit organization in your community:

Click Here

To share your views on Selective’s

social responsibility efforts:

Email: corpsocialresponsibility@selective.com

CONTACT INFORMATION