EXHIBIT  99.1

FOR  RELEASE:Immediately
CONTACT:     Mark  Cummins  (Investors)     215.256.5025
             mcummins@harleysvillegroup.com
             Randy  Buckwalter  (Media)     215.256.5288
             rbuckwalter@harleysvillegroup.com

HARLEYSVILLE  GROUP  ADDS  TO  LOSS  RESERVES  IN  FOURTH  QUARTER  2003;
EXPECTS  TO  REPORT  LOSS  FOR  FOURTH  QUARTER  AND  FULL  YEAR  2003

HARLEYSVILLE,  PA-FEBRUARY  11,  2004-Harleysville  Group  Inc.  (Nasdaq:  HGIC)
announced  today  it is increasing loss reserves for prior accident years by $42
million  pre-tax,  or  $0.92 per share after tax, in the fourth quarter of 2003,
reflecting  reserve increases primarily in four business lines. As a result, the
company  will report a diluted net loss per share in the range of $0.64 to $0.68
in  the  fourth quarter of 2003 and a diluted net loss per share in the range of
$1.57  to  $1.61  for  the  full  year  2003. There were essentially no realized
investment  gains  or  losses  in  the  fourth  quarter of 2003. The company had
diluted  net  income  of  $0.57  per  share in the fourth quarter of 2002, which
included realized investment gains of $0.04 per share, and diluted net income of
$1.53  per  share  in  2002.  For  the full year, 2003 results included realized
investment  losses  of  $0.02 per share, compared to $0.39 per share of realized
losses  in  2002.
     The  fourth  quarter 2003 estimate reflects additions to the company's loss
and  loss adjustment reserves for prior accident years, primarily in its workers
compensation,  commercial  automobile  liability,  commercial  multi-peril  and
personal  automobile  liability lines of business. The company stated that about
two-thirds  of the reserve development relates to the 1999 through 2001 accident
years.
     Harleysville  Group  will  release  its  fourth  quarter and full year 2003
results  on  Tuesday,  February 17, prior to the start of regular trading on the
Nasdaq  Stock Market. Michael L. Browne, Harleysville's chief executive officer,
will  host a live Webcast at 9:00 a.m. (ET) that day to discuss the results. The
Webcast  will  be available from the Investors section of the company's Web site
(www.harleysvillegroup.com).  An  archive  of the presentation will be available
until  February  17,  2005,  on  the  company's  site.
     Recognized  as "Good people to know" in the markets it serves, Harleysville
Insurance  is  a  premier  provider of insurance products and services for small
businesses  and  individuals,  and ranks among the top 60 U.S. property/casualty
insurance  groups  based  on  net  written premiums. Harleysville Mutual owns 57
percent  of  Harleysville  Group,  a  publicly  traded  holding company for nine
regional  property/casualty insurance companies collectively rated A (Excellent)
by  A.M.  Best  Company.  Harleysville Insurance, which distributes its products
exclusively  through  independent  insurance  agencies, currently operates in 32
Eastern and Midwestern states. Further information can be found on the company's
Web  site.

                                      #####

Certain  of the statements contained herein (other than statements of historical
facts)  are forward-looking statements. Such forward-looking statements are made
pursuant  to  the  safe  harbor  provisions of the Private Securities Litigation
Reform  Act  of  1995 and include estimates and assumptions related to economic,
competitive  and  legislative developments. These forward-looking statements are
subject  to  change  and  uncertainty  that  are,  in many instances, beyond the
company's  control  and  have been made based upon management's expectations and
beliefs  concerning  future  developments  and  their  potential  effect  on
Harleysville  Group Inc. There can be no assurance that future developments will
be  in  accordance  with  management's expectations so that the effect of future
developments  on  Harleysville  Group  will  be those anticipated by management.
Actual financial results including premium growth and underwriting results could
differ  materially from those anticipated by Harleysville Group depending on the
outcome  of  certain factors, which may include changes in property and casualty
loss  trends  and  reserves;  catastrophe  losses; the insurance product pricing
environment;  changes  in  applicable  law;  government  regulation  and changes
therein  that  may  impede  the  ability  to  charge  adequate rates; changes in
accounting  principles;  performance  of  the financial markets; fluctuations in
interest  rates;  availability  and  price of reinsurance; and the status of the
labor  markets  in  which  the  company  operates.

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