State Auto Financial Elects New Chairman and CEO

State Auto Financial Corporation (NASDAQ:STFC) today
announced that it elected Robert P. Restrepo, Jr. as Chairman and
Chief Executive Officer, effective immediately. He was elected to the
same offices by the board of directors of State Automobile Mutual
Insurance Company, STFC's parent. He was also elected to the board of
directors of both companies. Mr. Restrepo's election completes the
process of choosing a successor to Robert H. Moone, who last May
announced his decision to retire in May of 2006.
   Bob Restrepo comes to STFC with a broad and deep background in the
property casualty insurance industry encompassing both national and
regional companies and consistently demonstrating a strong commitment
to the independent agency system. His varied experience includes
senior executive roles at Aetna, Travelers, Hanover, and most recently
with Main Street America Group in Jacksonville, FL. A graduate of Yale
University, Bob has also served on a number of industry and community
boards including the American Insurance Association where he was
Chairman in 2003. The board of directors of STFC believes that Bob has
shown strong leadership and has produced positive financial results
throughout his career. He is well matched for the platform and
potential that STFC has built.
   Robert Moone, the outgoing CEO and Chairman, who will remain as
President until March 3, and as an employee of STFC until his
retirement in May of 2006, expressed confidence in his successor to
lead STFC and its affiliates in continuing to build shareholder value
and grow the Companies, saying: "In Bob Restrepo the boards have
identified a proven executive with a broad base of industry knowledge
and involvement. I will assist Bob in any way I can as he undertakes
his new responsibilities at State Auto."
   The new Chairman and CEO of State Auto indicated, "I appreciate
the confidence the boards of directors have placed in me and I
understand what's required to continue State Auto's remarkable record
and build on the great legacy Bob Moone has given us all. Together
with State Auto's boards, employees and agents, I know we can deliver
the products, systems and services that will differentiate us in the
marketplace and distinguish us in the eyes of all our stakeholders. We
will both build on the past and face the future with energy,
intelligence and a commitment to excellence.'"
   State Auto Financial Corporation, headquartered in Columbus, Ohio,
is a regional property and casualty insurance holding company engaged
primarily in writing both personal and commercial lines of insurance.
The company markets its products through nearly 22,000 independent
insurance agents associated with more than 3,100 agencies in 26
central and eastern states, excluding New York, New Jersey and the New
England states. The company was named Best Managed Insurance Company
for 2006 by Forbes magazine and is one of only 314 publicly traded
companies to earn the Mergent Award for having increased its dividends
for ten or more years in succession. The State Auto Insurance
Companies are rated A+ (Superior) by the A.M. Best Company. Additional
information on the company can be found on its web page at
www.STFC.com.

   Except for historical information, all other information in this
news release consists of forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those projected,
anticipated or implied. The most significant of these uncertainties
are described in State Auto Financial's Form 10-K and Form 10-Q
reports and exhibits to those reports, and include (but are not
limited to) legislative changes at both the state and federal level,
state and federal regulatory rule making promulgations and
adjudications, class action litigation involving the insurance
industry and judicial decisions affecting claims, policy coverages and
the general costs of doing business, the impact of competition on
products and pricing, inflation in the costs of the products and
services insurance pays for, product development, geographic spread of
risk, weather-related events, and other types of catastrophic events.
State Auto Financial undertakes no obligation to update or revise any
forward-looking statements.