Allied Group: Names CEO

                
                                    
Contact:  Jim Shaffer, CFO                                    
          (515) 280-4326                          
                                    
                                    
                                    
                                    
                      ALLIED GROUP, INC. NAMES CE0

Des Moines, Iowa, March 4, 1997 -- ALLIED Group, Inc. (NYSE symbol GRP)
Chairman John E. Evans announced actions taken by the Company's Board of
Directors at its meeting earlier today.  "Most significant," said Evans, "was
the election of Douglas L. Andersen as President and Chief Executive Officer. 
I am confident his leadership will benefit the Company and its stockholders." 
In recognition of his position, Andersen was also named a Director of the
Board.

Andersen has been part of Company management for 16 years, serving as regional
vice president and marketing vice president before his appointment as president
of the property-casualty companies in 1993.  In 1994, he was named President
(Property- casualty).

Citing the Company's strong capital position and its potential financial
performance, the Board voted to raise the first-quarter common stock dividend
to $0.17 from $0.15 per share.  The dividend will be paid on March 28, 1997 to
shareholders of record on March 18.

The Board also approved a stock repurchase program to acquire an additional
250,000 shares of its common stock over the next 24 months.  The Company has
57,000 shares remaining under the repurchase program authorized in July of
1996.

The stock repurchases will be made from time to time in compliance with Rule
10b-18 of the Securities Exchange Act of 1934.  Completion of the program is
dependent on market conditions. The repurchase program may be terminated at any
time at the Company's discretion and is not in response to any tender offer or
any other offer for shares of the Company.  This announcement is not a request
or offer for tender of shares to the Company.  As of February 28, 1997, the
Company had 20.4 million shares of common stock outstanding.

Investors following Company stock are reminded of another change.  On February
11, 1997, ALLIED Group, Inc. began trading on the New York Stock Exchange under
the symbol GRP.

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.



Ends.