Allied Group: Stock Split and Fourth Qtr Div

                                    
                                    
                                    
                                   
                                    
                                    
                                    
                                    
                                    
                      ALLIED GROUP, INC. ANNOUNCES
            3-FOR-2 STOCK SPLIT AND FOURTH QUARTER DIVIDEND 

Des Moines, Iowa, October 28, 1997 -- ALLIED Group, Inc. (NYSE symbol GRP)
announced that its Board of Directors authorized a 3-for-2 split of ALLIED
Group, Inc. common stock.  On November 28, 1997, the Company will issue to
stockholders an additional share of common stock for every two shares they hold
on the record date of November 14, 1997.  Fractional shares will be paid in
cash.  After the split the number of common shares outstanding will increase to
30.6 million from 20.4 million.

The Directors also declared a fourth-quarter cash dividend of $0.12 per share
on the post-split shares, a 5.9% increase over the previous quarter's payout. 
The dividend will be payable December 29, 1997 to stockholders of record on
December 5, 1997.

ALLIED Group, Inc. is a regional property-casualty insurance holding company
specializing in personal lines.  The Company's property-casualty subsidiaries
use independent agencies, exclusive agencies, and direct response marketing to
offer products in central and western states.

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