SELECTIVE INSURANCE GROUP INC

The following table provides information regarding income taxes.

1 The effective tax rate is calculated by taking "Total income tax expense" divided by "Income before income tax" less "Preferred stock dividends" on our Consolidated Statements of Income.

Income tax expense increased $72.2 million in 2025 compared to 2024, primarily due to (i) an underwriting profit from our Insurance Operations this year compared to an underwriting loss last year and (ii) higher net investment income. Refer to "Insurance Operations" and "Investments Segment" above for more information.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") became law. The legislation extends and modifies multiple tax provisions, some affecting current and future years. The tax law changes are reflected in the enactment period, which is the year ending December 31, 2025. Accordingly, we have analyzed the Act's major impacts, which include provisions that allow

100% bonus depreciation for certain qualified assets and full deduction of domestic research and development expenditures. Both are temporary differences and do not have an impact on the total tax expense, but provide a cash tax benefit that is estimated at $7.1 million for the year.

See Note 14. " Income Taxes" in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K for (i) reconciliations of our effective tax rate to the statutory rate of 21% and (ii) details regarding our net deferred tax asset and liability.