State Automobile Mutual Buying Rockhill Group

State Automobile Mutual Insurance Company has agreed to acquire Rockhill Insurance Group of Kansas City, Mo. Closing is expected in the first quarter of 2009, subject to approval by regulatory authorities.

Rockhill Insurance Group writes approximately $135 million in specialty property and casualty direct written premium through four insurance company subsidiaries: Rockhill Insurance Company, Plaza Insurance Company, American Compensation Insurance Company, and Bloomington Compensation Insurance Company.

Key business segments include commercial property, general liability for residential construction, commercial umbrella and surety; RTW, a monoline workers’ compensation company; and Absentia, a third party administrator providing workers’ compensation claim and loss control services. Rockhill writes business on a non-admitted basis in 49 states and the District of Columbia, and is licensed on an admitted basis in 42 states and the District of Columbia.

State Auto intends to retain Rockhill’s management and associates, operating the company as a stand alone subsidiary of State Automobile Mutual. State Automobile Mutual does not plan to pool Rockhill’s operations with those of State Auto’s for the foreseeable future.