State Automobile Mutual to Purchase Rockhill Insurance Group

Mutual Automobile Insurance Company state announced today that agreed to purchase the 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 dollars in specialty property and casualty insurance direct contributions by the four subsidiaries, Rockhill Insurance Company, Plaza Insurance Company, American Compensation Insurance and Bloomington Compensation Insurance Company. Key segments include commercial property, general liability for residential construction, commercial umbrella and surety; RTW, A monoline workers' compensation company, and in absentia, to a third party administrator providing workers' compensation claim and loss control services. Rockhill writes on the basis of activities other than those permitted in 49 states and the District of Columbia, and is licensed under the authorized 42 states and the District of Columbia.

Auto States intends to maintain Rockhill management and associates, operating as a subsidiary stand alone cross-country car. Mutual Association state does not plan to call Rockhill activities of these countries is a car in the foreseeable future.

"Rockhill strong culture of commitment and exceptional leadership team will complement and supplement the State Auto policies and actions," said State Auto Chairman, President and CEO Bob Restrepo. "Rockhill allows us to diversify our earnings base and portfolio of products we offer our partners independent agencies. In addition, we will make use of both talent and technology Rockhill brings to the state family car companies. I am confident that our successful experience in integrating acquisitions and replacement will be seamless addition of Rockhill and successful for our mutual policyholders and associates. "

"Our team is excited to go to the next generation with a partner that embraces our future and our obligations technical culture," said President and CEO Terry Younghanz Rockhill. "Our insurance policies, broker partners and employees can be comfortable that we are moving at a very stable relationship with an exceptional company. We also want to thank HBK and Northaven Management, Inc., which gave us our capital and business leadership during the first three years of operation" .

KeyBanc Capital Markets acted as financial advisor to the State Mutual Association in this transaction, and Benfield Advisory acted as financial advisor to Rockhill Insurance Group.

State Auto Insurance Companies, based 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 Trusted Choice (R) company partner. State Auto Insurance Companies include State Auto Financial Corporation (NASDAQ: STFC) and the Association Mutual Insurance Company, which is one of only 13 companies, which are to be evaluated (Superior) by AM Best Company every year since 1954.
Additional information can be found online at StateAuto.com