STFC State Auto Financial Corporation

A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of �aa-� of State Auto Insurance Companies (State Auto) and its members. A.M. Best also has affirmed the ICR of �a-� and debt rating of �a-� on $100 million 6.25% senior unsecured notes issued by State Auto Financial Corporation [NASDAQ: STFC]. All the above named companies are domiciled in Columbus, OH. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.) The ratings reflect State Auto�s strong capitalization, favorable operating performance and excellent regional market franchise. These attributes reflect its long-standing regional market presence, well-established agency relationships, strong brand name recognition, diversified product offerings and adherence to sound underwriting fundamentals. Somewhat offsetting these positive rating factors is the group�s exposure to localized storms and an earthquake stemming from the New Madrid fault in the Midwest, along with hurricane activity in the southeastern United States. In addition, State Auto has debt servicing requirements due to the above mentioned debt issuance, which could put a strain on future earnings. However, State Auto has continued to emphasize disciplined underwriting, pricing and claims processes. As a result of this strategy, State Auto has reported favorable operating results in each of the past five years. The FSR of A+ (Superior) and the ICRs of �aa-� have been affirmed for State Auto Insurance Companies and its following members: State Auto Florida Insurance Company Patrons Mutual Insurance Company of Connecticut Litchfield Mutual Fire Insurance Company Beacon National Insurance Company Beacon Lloyds Insurance Company Farmers Casualty Insurance Company Milbank Insurance Company State Auto Property and Casualty Insurance Company State Auto Insurance Company of Wisconsin State Auto National Insurance Company State Automobile Mutual Insurance Company State Auto Insurance Company of Ohio Meridian Citizens Mutual Insurance Company Meridian Security Insurance Company The ICR of �a-� has been affirmed for State Auto Financial Corporation. The following debt rating has been affirmed: State Auto Financial Corporation� -- �a-� on $100 million 6.25% senior unsecured notes, due 2013 For Best�s Debt Ratings, all other Best�s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.