Allied Group: Impact of 2nd Qtr Wind & Hail CONTACT: Jim Shaffer, CFO (515) 280-4326 ALLIED Group, Inc. Updates Impact of Second Quarter Wind and Hail Des Moines, Iowa, July 13, 1998 -- ALLIED Group, Inc. (NYSE symbol GRP) announced wind and hail losses incurred in the second quarter of 1998 were approximately $0.60 per share including the catastrophe reinsurance reinstatement costs of $0.03 per share. The $0.60 per share includes the wind and hail losses reported in the previous press release of June 23. The majority of the losses were a result of Midwestern storms reported in May and June. 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. *** Ends.