A.M. Best Co. has upgraded the financial strength rating (FSR) to A+ (Superior) from A- (Excellent) and issuer credit rating (ICR) to "aa-" from "a-" of Montpelier US Insurance Company (MUSIC). Both ratings have been removed from under review with positive implications and assigned a negative outlook.

These rating actions follow the acquisition of MUSIC by Selective Insurance Group, Inc. (NASDAQ: SIGI), effective December 31, 2011, as well as the execution of an updated pooling agreement under which MUSIC has become a member of the pool led by Selective Insurance Company of America (SICA).

On May 27, 2011, A.M. Best affirmed the FSR of A+ (Superior) and ICRs of "aa-" of Selective Insurance Group and its seven property/casualty pooling members. The outlook for these ratings is negative.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating

process and highlights the different rating criteria employed. Additional key criteria utilized include: "Understanding BCAR for Property/Casualty Insurers"; "Rating Members of Insurance Groups"; "The Treatment of Terrorism Risk in the Rating Evaluation"; "Natural Catastrophe Stress Test Methodology"; "Risk Management and the Rating Process for Insurance Companies"; "Catastrophe Risk Management Incorporated Within the

Rating Analysis"; "Catastrophe Analysis in A.M. Best Ratings"; and "A.M. Best's Ratings & the Treatment of Debt." Methodologies 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.

A.M. Best Co.
Ed Keane, 908-439-2200, ext. 5291
Senior Financial Analyst
edward.keane@ambest.com
or
Jennifer Marshall, 908-439-2200, ext. 5327
Managing Senior Financial Analyst
jennifer.marshall@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com