State Auto Financial Announces Dividend Increase

    COLUMBUS, Ohio--Aug. 16, 2001--The board of directors of State Auto Financial Corporation voted today to increase the quarterly cash dividend to $0.0325 per share, payable September 28, 2001, to shareholders of record at the close of business on September 11, 2001.
    The previous cash dividend was $0.03 per share.
    This marks STFC's tenth annual dividend increase and 41st consecutive cash dividend since the company's initial public offering of common stock on June 28, 1991.
    State Auto Financial Corporation is a regional property and casualty insurance holding company engaged primarily in writing personal and commercial automobile, homeowners, commercial multi-peril, workers' compensation and fire insurance. The company currently markets its products through more than 21,500 agents associated with approximately 3,400 agencies in 26 states. Products are marketed primarily in the Midwest and Eastern United States, excluding New York, New Jersey and the New England states.

    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 and weather-related events, and other types of catastrophic events. State Auto Financial undertakes no obligation to update or revise any forward-looking statements.