Allied Group: Incr Buyback up to 2 Million Shrs

                             ALLIED GROUP, INC.
                    INCREASES BUYBACK UP TO 2 MILLION SHARES


Des Moines, Iowa, May 7, 1998 -- ALLIED Group, Inc. (NYSE symbol GRP)
announced its Board of Directors increased the stock repurchase program to
buy up to 2 million shares.

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
will depend on market conditions.   The program is not a request or an offer
for or in response to a tender offer or any other offer for Company shares.
The Company may terminate the program at any time.  As of April 30, 1998,
the Company had 30.6 million shares outstanding.


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