230557--2/27/2009--SELECTIVE_INSURANCE_GROUP

related topics

{loss, insurance, financial}

{financial, litigation, operation}

{system, service, information}

{operation, natural, condition}

{regulation, change, law}

{condition, economic, financial}

{competitive, industry, competition}

{regulation, government, change}

{loan, real, estate}

{capital, credit, financial}

{personnel, key, retain}

{debt, indebtedness, cash}

{product, liability, claim}

{tax, income, asset}

{provision, law, control}

{investment, property, distribution}

Our loss reserves may not be adequate to cover actual losses and expenses. As a property and casualty insurer we are particularly vulnerable to catastrophic events. Continued deterioration in the public debt and equity markets, as well as in the private investment marketplace, could lead to investment losses, which may adversely affect our results of operations, financial condition and liquidity. The property and casualty insurance industry is cyclical. There can be no assurance that the actions of the U.S. Government, Federal Reserve and other governmental and regulatory bodies to try to stabilize the financial markets will achieve their intended effect. We are subject to the types of risks inherent in making alternative investments in private limited partnerships. The valuation of our investments include methodologies, estimations and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may adversely affect our results of operations or financial condition. The determination of the amount of impairments taken on our investments is highly subjective and could materially impact our results of operations or financial position. A downgrade or a potential downgrade in our financial strength or credit ratings could result in a loss of business and could have a material adverse effect our financial condition and results of operations We operate in a highly competitive environment which could adversely impact our results of operations and financial condition. The occurrence of any acts of terrorism not covered by, or exceeding, reinsurance limits could have a material adverse affect on our results of operations and financial condition. The Parent is a holding company, and its subsidiaries may have a limited ability to declare dividends, and thus it may not have access to the cash that is needed to meet its cash needs. We are subject to a variety of modeling risks which could have a material adverse impact on our business results. Our ability to reduce our exposure to risks depends on the availability and cost of reinsurance. We depend on independent insurance agents and other third party service providers. We are heavily regulated in the states in which we operate and changes in regulation may reduce our profitability and limit our growth. Regulation and Legislation of Agent Compensation We face risks as a servicing carrier in the WYO Program of the U.S. government s NFIP. Changes in tax laws impacting marginal tax rates and/or the preferred tax treatment of municipal obligations could adversely impact our business. Class action litigation could affect our business practices and financial results. A change in our market share in New Jersey could adversely impact the results of our private passenger automobile business. We depend on key personnel. We face risks from technology-related failures. We face risks in the HR Outsourcing business We employ anti-takeover measures that may discourage potential acquirers and could adversely affect the value of the Parent common stock.

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230557--2/27/2009--SELECTIVE_INSURANCE_GROUP_INC