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SELECTIVE INSURANCE GROUP ANNOUNCES REDUCTION IN WORK FORCE

 BRANCHVILLE, N.J., July 1 /PRNewswire/ -- Selective Insurance Group, Inc. (NASDAQ-NMS: SIGI) announced today that as a result of several actions, including corporate restructuring, the company's work force will be reduced by an estimated 230 employees by the end of 1994. Management expects that 140 reductions will be occasioned by the corporate restructuring in 1993 and the current availability of a special early retirement program. The balance of the employees will be displaced by late 1994 when the implementation of an automated commercial lines policy writing system shall be complete.
 The company has established a reserve of $9 million in connection with these reductions in staff. The reserve has been established for severance payments and the cost of retirement and other employee benefits offered to eligible employees. The one-time charge, net of tax effect, of $5.9 million, or $.44 per share primary, will be included in the company's second quarter 1993 results to be released on Aug. 6, 1993.
 Mr. James W. Entringer, chairman, president and chief executive officer of the company stated, "This reduction in staff is a vital part of the company's strategy in this highly competitive market. The elimination of jobs is a very difficult process, but this restructuring will result in greater efficiencies and improve service." Management expects immediate reduction in annual labor costs, before tax effects, of approximately $7 million. When the commercial lines automation system is fully implemented in 1994, an additional $2 million reduction in annual labor costs will be realized. The annual cost of the automation system is estimated to be $.5 million for ten years.
 Selective Insurance Group, Inc. is a holding company with six insurance subsidiaries: Selective Insurance Company of America and Selective Way Insurance Company, based in Branchville; Selective Insurance Company of the Southeast and Selective Insurance Company of South Carolina, based in Charlotte, N.C.; Exchange Insurance Company and Charleston Insurance Company.
 -0- 7/1/93
 /CONTACT: Thornton R. Land, executive vice president, 201-948-1322 or Gregory E. Murphy, vice president, 201-948-1292, both of Selective Insurance Group/
 (SIGI)


CO: Selective Insurance Group, Inc. ST: New Jersey IN: INS SU:

WB-LG -- NY030 -- 7622 07/01/93 10:25 EDT
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Publication:PR Newswire
Date:Jul 1, 1993
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