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State Automobile Mutual announces affiliation with Patrons Mutual Group


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COLUMBUS, Ohio – September 13, 2007 – State Automobile Mutual Insurance Company announced today that it has entered into an affiliation agreement with the Patrons Mutual Group of Connecticut. Under this agreement, State Automobile Mutual will assume operational authority of the Patrons Mutual Group subject to approval by regulatory authorities and members of the Patrons Group.

“We are very pleased to announce our affiliation with Patrons Mutual Group, which includes both the Patrons and Litchfield Fire Insurance Companies. We welcome them into the State Auto family. After working with the Patrons and Litchfield teams over the past several months, I know that the cultures and operating philosophies of our companies are very similar. I am confident that this affiliation will benefit the policyholders, associates and agents of both groups,” commented Bob Restrepo, State Auto Chairman, President and CEO. “This affiliation benefits State Auto, enhancing our geographic spread and developing a new source of profitable growth. The policyholders of Patrons and Litchfield will gain access to new products and services and a strong balance sheet, while preserving a strong local presence of quality people and responsive service,” added Restrepo.

Patrons Mutual Group President and CEO William Siclari said, “From our first discussions we knew our cultures matched. Like State Auto, our employees are the heart of our business and our agents the life blood. The business synergies benefit both parties by providing State Auto entry into New England and Patrons enhanced technology and financial strength. This affiliation will allow Patrons and Litchfield to expand their business potential with policyholders, agents and employees.”

The Patrons Mutual Group, headquartered in Glastonbury, Connecticut, consists of Patrons Mutual Insurance Company of Connecticut, Litchfield Mutual Fire Insurance Company, Patrons Fire Insurance Company of Rhode Island, and Provision State Insurance Company. The Patrons Mutual Group, currently rated B++ (Very Good) by the A.M. Best Company, markets its personal, commercial, farm and specialty insurance products through approximately 200 independent insurance agencies in Connecticut, Massachusetts, Rhode Island and Vermont. For the year ended December 31, 2006, the companies posted direct written premiums of $54.0 million and had policyholders’ surplus of $23.7 million.

The State Auto Insurance Companies, headquartered in Columbus, Ohio, are engaged primarily in writing personal and business insurance products exclusively through approximately 3,200 independent insurance agencies in 29 states and is 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 14 companies rated A+ (Superior) by the A.M. Best Company every year since 1954. Additional information on the State Auto Insurance Companies can be found online at StateAuto.com.

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