COLUMBUS, Ohio -- December 11, 2000 -- State Automobile Mutual Insurance Company (State Auto Mutual) today released the following statement regarding recent developments relating to its pending merger with Meridian Mutual Insurance Company and purchase of the outstanding publicly owned shares of Meridian Insurance Group, Inc. (MIGI).
"State Automobile Mutual is aware of Greg Shepard's efforts to seek a court order to enjoin the pending transaction between MIGI and State Auto Mutual. State Auto Mutual believes the per share price agreed to in this transaction fairly values MIGI, and the transaction is fair to all of the companies' constituents. We are confident the transaction will ultimately close, following receipt of regulatory, policyholder, and shareholder approvals," said Robert L. Bailey, State Auto Chairman.
State Auto Mutual is the parent of State Auto Financial Corporation (State Auto Financial), 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 companies currently market their products through more than 13,100 agents associated with approximately 2,200 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 promulgation's, 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.
This release is neither an offer to sell nor a solicitation of an offer to buy the securities of either company, nor a solicitation of a proxy. Any such offer or solicitation will only be made in compliance with applicable securities law.