State Automobile Mutual to Purchase Rockhill Insurance Group

  
    
  
  
    
      State Automobile Mutual Insurance Company announced today that it has 
      agreed to acquire Rockhill Insurance Group of Kansas City, Mo. Closing 
      is expected in the first quarter of 2009, subject to approval by 
      regulatory authorities.
    
    
      Rockhill Insurance Group writes approximately $135 million in specialty 
      property and casualty direct written premium through four insurance 
      company subsidiaries: Rockhill Insurance Company, Plaza Insurance 
      Company, American Compensation Insurance Company, and Bloomington 
      Compensation Insurance Company. Key business segments include commercial 
      property, general liability for residential construction, commercial 
      umbrella and surety; RTW, a monoline workers’ compensation company; and 
      Absentia, a third party administrator providing workers’ compensation 
      claim and loss control services. Rockhill writes business on a 
      non-admitted basis in 49 states and the District of Columbia, and is 
      licensed on an admitted basis in 42 states and the District of Columbia.
    
    
      State Auto intends to retain Rockhill’s management and associates, 
      operating the company as a stand alone subsidiary of State Automobile 
      Mutual. State Automobile Mutual does not plan to pool Rockhill’s 
      operations with those of State Auto’s for the foreseeable future.
    
    
      “Rockhill’s strong underwriting culture and exceptional leadership team 
      will both complement and supplement State Auto’s strategy and 
      operations,” said State Auto Chairman, President and CEO Bob Restrepo. 
      “Rockhill allows us to diversify our base of earnings and the portfolio 
      of products we offer our independent agency partners. In addition, we 
      will benefit from both the talent and technology Rockhill brings to the 
      State Auto family of companies. I am confident that our successful track 
      record in integrating acquisitions and affiliations will make the 
      addition of Rockhill seamless and successful for our mutual 
      policyholders and associates.”
    
    
      “Our team is excited as we move to the next generation with a partner 
      that embraces our future and shares our technical underwriting culture,” 
      said Rockhill President and CEO Terry Younghanz. “Our policyholders, 
      broker partners and employees can be comfortable that we are moving into 
      a very stable relationship with an exceptional company. We also want to 
      thank HBK and Northaven Management, Inc., who provided us with capital 
      and business leadership during our first three years of operation.”
    
    
      KeyBanc Capital Markets acted as the financial advisor to State 
      Automobile Mutual in this transaction, and Benfield Advisory acted as 
      the financial advisor to Rockhill Insurance Group.
    
    
      The State Auto Insurance Companies, headquartered in Columbus, Ohio, 
      are engaged primarily in writing personal and business insurance 
      products exclusively through approximately 3,400 independent insurance 
      agencies in 33 states and are proud to be a Trusted Choice® company 
      partner. The State Auto Insurance Companies include State Auto Financial 
      Corporation (NASDAQ:STFC) and State Automobile Mutual Insurance Company, 
      which is one of only 13 companies to be rated A+ (Superior) by the A.M. 
      Best Company every year since 1954. Additional information can be found 
      online at StateAuto.com.