EXHIBIT  99.1


HARLEYSVILLE  INSURANCE  ANNOUNCES  RESIGNATION  OF  M.  LEE  PATKUS

HARLEYSVILLE, PA-JANUARY 17, 2005-Harleysville Insurance announced today that M.
Lee  Patkus,  president  and  chief operating officer of Harleysville Group Inc.
(Nasdaq:  HGIC),  has  resigned his positions and will leave the company on Jan.
21,  2005.
     The  company  also  announced  that,  effective  immediately,  all  senior
management  team members formerly reporting to Patkus now will report to Michael
L.  Browne,  Harleysville  Group's  chief  executive  officer.
     "Harleysville  Insurance  has  benefited from Lee Patkus' leadership during
his tenure with the company, and we wish him well following his decision to move
on  to another professional opportunity in the insurance industry," Browne said.
"Lee  has  helped  assemble  an  excellent  management  team  in  our  insurance
operations,  and  he  leaves  us in a strong position to continue to improve our
results.  I appreciate the support and assistance Lee has provided to me since I
was named CEO nearly a year ago, and I am confident I speak for all employees in
thanking  him  for  his  service  to  Harleysville  Insurance."
     Patkus  joined  Harleysville  in  1999 as executive vice president of field
operations  and  subsidiaries.  He  was  named president and COO of Harleysville
Group  in  August  2002.
     Harleysville Insurance is a leading regional provider of insurance products
and services for small and mid-sized businesses, as well as for individuals, and
ranks  among  the  top  60  U.S. property/casualty insurance groups based on net
written  premiums.  Harleysville  Mutual  Insurance  Company  owns 57 percent of
Harleysville  Group  Inc.  (Nasdaq: HGIC), 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  at  www.harleysvillegroup.com.

                                      #####

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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