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EXHIBIT 10.16aa

                     AMENDMENT NO. 3 TO EMPLOYMENT AGREEMENT



                  AMENDMENT NO. 3, dated as of September 1, 1999, among
SELECTIVE INSURANCE GROUP, INC., a New Jersey corporation ("Selective"), having
an office at 40 Wantage Avenue, Branchville, New Jersey 07826, SELECTIVE
INSURANCE COMPANY OF AMERICA, a New Jersey corporation ("SICA"), having an
office at 40 Wantage Avenue, Branchville, New Jersey 07826, and THORNTON R.
LAND, having an address at 78 Onderdonk Road, Warwick, New York 10990 (the
"Executive"), to Employment Agreement dated as of September 1, 1993 among
Selective, SICA and the Executive, as heretofore amended by Amendment No. 1
thereto dated as of January 31, 1994 and Amendment No. 2 thereto dated as of
June 6, 1996 (as so amended, the "Employment Agreement").

                  WHEREAS, Selective, SICA and the Executive have executed and
delivered the Employment Agreement, and Selective has guaranteed all of the
obligations of SICA as the Employer under the Employment Agreement; and

                  WHEREAS, the parties hereto desire to further amend the
Employment Agreement to extend the term thereof and to modify the Salary (as
defined in Section 3 of the Employment Agreement) provided for therein.

                  THEREFORE, in consideration of the premises and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

                  1. The term of employment under the Employment Agreement is
hereby extended for a period of two (2) years commencing September 1, 1999 (the
"Renewal Term"), and all references in the Agreement to the term thereof or the
Executive's term of employment thereunder shall include the Renewal Term.

                  2. The Salary, as defined and provided for in Section 3 of the
Employment Agreement, shall be paid to the Executive at a rate of not less than
Two Hundred Forty Thousand Dollars ($240,000.00) per year during the Renewal
Term.

                  3. Selective reaffirms that it guarantees to the Executive the
full performance by SICA of all of its obligations under the Employment
Agreement as amended herein.

                  4. Except as amended herein, the Employment Agreement shall
continue in full force and effect on and after the date hereof.

                  IN WITNESS WHEREOF, this Amendment has been duly executed by
the Executive and on behalf of Selective and SICA by their duly authorized
officers as of the date and year first above written.



                                 SELECTIVE INSURANCE GROUP, INC.


                                 BY:____________________________
                                       Name:  Gregory E. Murphy
                                       Title:     President and Chief
                                                    Executive Officer


                                 SELECTIVE INSURANCE COMPANY
                                   OF AMERICA


                                 BY:____________________________
                                        Name:  Gregory E. Murphy
                                        Title:     President and Chief
                                                     Executive Officer


                                    ____________________________
                                    Executive

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