Allied Group: Reports Impact of Wind and Hail


CONTACT:  Jim Shaffer, Sr. Vice President & CFO
          (515) 280-4326



                              ALLIED Group, Inc.   
                        Reports Impact of Wind and Hail

Des Moines, Iowa, June 23, 1998 -- ALLIED Group, Inc. (NYSE symbol GRP)
announced wind and hail losses incurred to date in the 1998 second quarter are
approximately $0.36 to $0.38 per share including the catastrophe reinsurance
reinstatement costs.  The majority of the losses were a result of Midwestern
storms reported on May 15 and May 30.

The Company has historically reported the most severe wind and hail losses in
the second quarter.  During the second quarter of 1997 and 1996, the Company
reported wind and hail losses of $0.27 and $0.41 per share, respectively.  The
1998 second quarter earnings release is scheduled for July 22, 1998.


Safe Harbor Statement
This press release contains forward-looking statements made pursuant to the
safe harbor provisions within the meaning of the Private Securities Litigation
Reform Act of 1995.  Investors are cautioned that there are important factors
that could cause actual results to differ materially from those in these
forward-looking statements.  These factors include, but are not limited to,
(1) heightened competition--particularly intensified price competition, (2)
adverse state and federal legislation and regulations, (3) changes in interest
rates causing a reduction of investment income, (4) general economic and
business conditions that are less favorable than expected, (5) unanticipated
changes in industry trends, (6) adequacy of loss reserves, (7) catastrophic
events or the occurrence of a significant number of storms and wind and hail
losses, and (8) other risks detailed from time to time in the Company's
reports.

                                   END