State Auto Financial Declares 62nd Consecutive Quarterly Dividend

COLUMBUS, Ohio--Today the board of directors of State Auto Financial Corporation declared a quarterly cash dividend of $0.10 per share, payable December 29, 2006, to shareholders of record at the close of business on December 15, 2006.

This is the 62nd 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 been increased annually at a compound average annual growth rate of 15% since 1991.

State Auto Financial Corporation, headquartered in Columbus, Ohio, is a super regional property and casualty insurance holding company. The company markets its personal and commercial insurance products through more than 22,800 independent insurance agents associated with nearly 3,000 agencies in 27 states. The company has been named Forbes Magazine’s “Best Managed Insurance Company in America” for 2006 and is in a select group, making up just 3% of publicly traded companies, earning the Mergent Dividend Achiever Award for having increased its dividends for ten or more years in succession. The State Auto Insurance Companies are rated A+ (Superior) by the A.M. Best Company. Additional information on the company can be found on its web page at www.STFC.com.