PROGRESS

THROUGH IMPACT

TABLE OF CONTENTS

A Message from our CEO

4

About Us

6

Our Footprint / Our Business

7

Awards and Recognition

8

Our Approach to Sustainability

9

Managing Climate Risks

11

Oversight of Climate Change-related Risks

11

Helping Our Customers Mitigate Climate-related Risks

12

Preparing for a Transition to a Clean

13

Energy Future

Evaluating Opportunities as Part of

14

Climate Transition

Operations

15

Reducing Our Carbon Footprint and

15

Environmental Impact

Managing Operational Risk

17

Integrating Sustainability into

18

Investment Oversight

Partnering with our Key Stakeholders

19

Customers and Distribution Partners

19

Strong Focus on Tracking and Enhancing

20

Customer Satisfaction and Reducing Complaints

Safety Management Solutions

22

Proactive Messaging and Increased

23

Customer Preparedness

Investments in Providing a Seamless

25

Customer Experience

Human Capital

26

A Focus on DE&I Efforts through

27

Hiring, Retention, and Promotion Practices

Distribution Partners and Vendors

31

Communities

32

The Selective Insurance Group Foundation

32

Investments in Branchville Location (Headquarters)

32

A Focus on Oversight, Ethics, and Integrity

33

Ethics and Anti-Corruption Policies

34

Sustainability Committee and Governance

36

Appendix

37

EEO-1 Information

37

ABOUT THIS

REPORT

Our third Sustainability Report highlights key initiatives tied to our business strategy that enhance our

sustainability and corporate citizenship. We seek tangible

results for our stakeholders and are committed to long- term progress. We believe that our long-standing strategy

of advancing the interests of our customers, distribution

partners, and employees has generated superior financial performance for our shareholders while supporting

the communities where we live and work. This Report's

Appendix includes Equal Employee Opportunity (EEO- 1) data. Our Sustainability Accounting Standards Board (SASB) report, referencing insurance industry-specific

standards, is on our website at www.selective.com.In 2022, we published our Task Force on Climate-Related Financial Disclosures (TCFD) report, highlighting our

strategy to address climate-related risks and opportunities

- and it is available on our website athttps://www.selective.com/about-selective/corporate-social-responsibility.

This report covers Selective's performance in 2022 unless otherwise explicitly stated.

3

A MESSAGE FROM OUR CHIEF EXECUTIVE OFFICER

Our primary objectives as an insurance organization are to (i) help our

customers put their lives and businesses back together after experiencing a covered loss, (ii) help make our customers and communities safer, and (iii) support economic growth by providing capital that protects against covered

losses and allows businesses to invest confidently intheir operations. Responsible corporate actions have long been part of Selective's history, and I am proud of our recent sustainability initiatives that are aligned with

our business strategy. We have outlined a vision and implemented programs

to address critically important issues, including building a highly engaged team of employees and strengthening the communities in which we live

and operate.

We are (i) integrating sustainability principles into our business and operations and (ii) partnering with many key stakeholders to develop solutions that enhance resilience, well-being, and customer service. These

long-term partnerships should help us continue to generate superior returns for our shareholders.

Integrating sustainability into our business and operations:

As a property and casualty ("P&C") insurance company, Selective covers thousands of individuals and businesses against the financial impact of insured losses, including catastrophic events. For example, climate change increases the unpredictability of weather-related loss frequency and severity, posing a long-term risk to our customers' lives and livelihoods - and our business. We aim to mitigate the impacts of climate change with

(i) prudent oversight and management of catastrophe risk exposure, (ii) providing responsive claims handling, safety management services, and

proactive weather alerts, (iii) preparing for the continuing transition to clean energy, and (iv) reducing our carbon footprint.

4

Partnering with Key Stakeholders

Attracting and retaining talent:

We deliver excellent service to our customers and distribution partners through our skilled and compassionate employees. Building an inclusive culture with employees of diverse backgrounds and perspectives permits us toinnovate and differentiate ourselves in a dynamic and evolving marketplace.

A focus on oversight, ethics, and integrity: Strong oversight, ethics, and integrity are the foundation of our financial and operating success. Our Board of Directors is highly engaged and has the diverse skill sets to monitor our business. Our Board composition reflects our commitment to a culture of innovation and creativity. Our Code of Conduct imparts the strong sense of integrity and purpose we expect from all employees. We are transparent about our employee and management compensation, linking annual and long-termincentive compensation programs to pre-determinedfinancial and operating metrics and strategic initiatives.

Conclusion:

By embedding sustainable initiatives into key aspects of our business, Selective has deliveredsignificant value over time for our shareholders by serving our

internal and external stakeholders. Our consistent and superior financial track

record places us among an exclusive group of high-performing P&C insurance companies. Our 12.4% non-GAAP operating return on equity in 2022 was a significant achievement, given elevated net catastrophe losses, capital market

volatility, and higher loss cost trends driven by elevated inflation and other

factors. In early 2023, we established a 12% non-GAAP operating return on equity target for the year and a 95% long-term combined ratio target. We

understand that our strengths in offering competitive products and services

to our customers and being astable market for our distribution partners depend on being well-capitalized, managing our risk responsibly, maintaining

our strong financial strength ratings, and running an efficient and profitable organization.

We invite you to read our third Sustainability Report - Progress through Impact. It details our efforts to create a corporate environment where people feel empowered to bring about positive, sustainable change.

It also highlights the accomplishments of our employees, who seek to serve our customers, distribution partners, and communities while acting in the long-term interest of our shareholders.

John J. Marchioni

Chairman, President and

Chief Executive Officer

5

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Disclaimer

Selective Insurance Group Inc. published this content on 07 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 July 2023 18:10:00 UTC.