Allied Group: News Release



CONTACT:
Joele Frank / Dan Katcher
Abernathy MacGregor Frank
(212) 371-5999


FOR IMMEDIATE RELEASE

ALLIED GROUP IN TALKS WITH NATIONWIDE MUTUAL

Recommends That Shareholders Not Tender Pending Outcome

DES MOINES, Iowa - June 2, 1998 -- ALLIED Group, Inc. (NYSE: GRP) announced
today that it has filed with the Securities and Exchange Commission a Schedule
14D-9 with respect to the tender offer by Nationwide Mutual Insurance Company
for shares of ALLIED Group at $47 per share.  In the filing, the ALLIED Group
Board of Directors recommends that shareholders defer making a decision whether
to tender their shares pending the outcome of discussions between ALLIED Group
and Nationwide.

In those discussions, Nationwide has stated that it will increase the price per
ALLIED Group share to $48.25 as part of a negotiated merger agreement, and the
ALLIED Group Board, on the recommendation of a committee of the directors who
are not affiliated with ALLIED Mutual Insurance Company or with ALLIED Life
Financial Corporation, has determined that it is prepared in principle to
recommend a transaction at that price, subject to negotiation of an acceptable
merger agreement. 

ALLIED Group intends to inform its shareholders if a definitive agreement is
reached with Nationwide or if discussions are terminated.  

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