State Auto Financial Declares Quarterly Dividend

COLUMBUS, Ohio--March 4, 2005--The board of directors of State Auto Financial Corporation today declared a quarterly cash dividend of $0.045 per share, payable March 31, 2005, to shareholders of record at the close of business on March 19, 2005.

This is the 55th consecutive quarterly cash dividend declared by the company's board since STFC had its initial public offering of common stock on June 28, 1991. STFC's dividend payments have increased at a compound average annual growth rate of 10% since 1991.

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 more than 22,500 independent insurance agents associated with approximately 3,250 agencies in 26 central and eastern states, excluding New York, New Jersey and the New England states. The company is included in the 2005 Forbes Magazine's Platinum 400 list of the best-managed companies in America and the State Auto Insurance Companies' pool carries an A+ (Superior) rating from A.M. Best Co. Additional information on the company may be found on its web page at www.STFC.com.