UPDATE 1-Selective Insurance Q2 profit beats Street

(Recasts, adds deatils)

July 31 (Reuters) - Selective Insurance Group Inc (SIGI.O) posted second-quarter profit that narrowly beat market expectations, helped by improvements in its workers compensation business, but tightened its earnings range for the year.

The property and casualty insurer earned $28.7 million, or 54 cents a share, compared with $35.9 million, or 64 cents a share, a year earlier, the company said in a statement.

Operating income rose slightly to $27.4 million, or 52 cents a share.

Analysts expected the company to earn 51 cents a share, excluding items, according to Reuters Estimates.

After-tax investment income and net premium written fell by 5 percent and 4 percent, respectively, in the quarter.

For 2008, the company narrowed the high end of its earnings range by 10 cents to $2.20 a share. The low end was maintained at $2 a share, which is in line with consensus estimates.

Shares of the Branchville, New Jersey-based company closed at $21.60 Thursday on Nasdaq. (Reporting by Anurag Kotoky in Bangalore; Editing by Anil D'Silva)