Harleysville Group Inc. Increases Quarterly Dividend by 6 Percent to $0.38 Per Share, or $1.52 Per Share on an Annualized Basis

The Board of Directors of Harleysville Group Inc. (NASDAQ: HGIC) today increased the company’s regular quarterly cash dividend by 6 percent to $0.38 per share from $0.36 per share, or to an annualized $1.52 per share from $1.44 per share. The dividend is payable September 30, 2011, to shareholders of record on September 15, 2011. This marks the 101st consecutive quarter Harleysville Group has paid a dividend since the company went public in 1986.

“The increase in our dividend is a reflection of our strong balance sheet—which is clearly evidenced by a high-quality investment portfolio, a strong capital base and reserve position, a low debt-to-capital ratio, and a healthy premium-to-surplus ratio—as well as our ongoing commitment to managing our capital position effectively for the benefit of our investors,” said Michael L. Browne, Harleysville Group’s president and chief executive officer. “As we mark 25 years as a public company, we’re proud of the fact that we’ve paid our shareholders a dividend every quarter during that time, and that our dividend has increased every year, which is a direct reflection of our financial strength and our confidence in the future.”

Harleysville Insurance is a leading super-regional provider of insurance products and services for small and mid-sized businesses, as well as for individuals, and ranks among the top 60 U.S. property/casualty insurance groups based on net written premiums. As a Trusted Choice® company partner, Harleysville distributes its products exclusively through a network of independent agents primarily across 32 states. Harleysville is ranked #21 in the most recent InformationWeek 500, the publication’s annual listing of the most innovative information technology organizations in the U.S., and has been included on the list in each of the last five years. Harleysville Mutual Insurance Company owns approximately 54 percent of Harleysville Group Inc. (NASDAQ: HGIC), a publicly traded holding company for eight regional property/casualty insurance companies collectively rated A (Excellent) by A.M. Best Company. Harleysville Group is listed on the NASDAQ Global Select Market, which is comprised of the top third of all NASDAQ member companies and has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Harleysville Group has paid a dividend every quarter since the company went public in 1986, and was recognized with a 2010 Mergent Dividend Achiever Award for its long-term history of dividend increases. Further information can be found on the company’s website at www.harleysvillegroup.com.