Exhibit 99.2
Harleysville Group Announces CFO Bruce Magee Plans to Step Down in 2005;
Company Appoints Robert Kauffman as General Counsel
HARLEYSVILLE, Pa., Oct. 28 /PRNewswire-FirstCall/ -- Harleysville Group
Inc. (Nasdaq: HGIC) today announced that Bruce J. Magee will step down from
his role as senior vice president and chief financial officer in 2005. The
company said a search for a successor is underway.
The company also announced the appointment of Robert A. Kauffman as senior
vice president and general counsel. In that position, he also will serve as
secretary and chief governance officer for Harleysville Group.
Bruce Magee decision
"Bruce Magee has been a valuable and trusted member of the Harleysville
leadership team for the past 18 years, and I respect his decision to pursue a
new course in his career," said Michael L. Browne, Harleysville Group's chief
executive officer. "Bruce's loyalty to our company and his commitment to its
long-term success are evident in his offer to continue as CFO through the
conclusion of our 2004 year-end financial reporting cycle and to assist as
needed in fiscal year 2005 to ensure a smooth transition period for his
successor."
"It has been a pleasure to serve with such an outstanding team of
insurance professionals, but my decision to step down stems from a desire to
better balance my professional and personal priorities," Magee commented.
"Harleysville has a number of core strengths - including a terrific franchise
and a strong capital position - and I believe the strategic direction the
company has set will help restore it to its past high levels of financial
performance."
Magee joined Harleysville in 1986 as vice president and controller, his
appointment coinciding with the company's initial public offering in May of
that year. He was named to his current position in 1993. Prior to joining
Harleysville, Magee was an audit manager specializing in the insurance
industry with KMG Main Hurdman (a predecessor of KPMG) in Philadelphia. He is
a graduate of the Wharton School of the University of Pennsylvania with a
bachelor's degree in economics.
Robert Kauffman appointment
On the appointment of Robert Kauffman as general counsel, Browne stated,
"Rob Kauffman is an outstanding and well-respected lawyer who will be a great
asset to Harleysville. He has extensive experience counseling corporate
clients in a variety of areas, including insurance matters, and he has been
successful in managing staff attorneys. His expertise will serve our
organization well in this important leadership role."
Most recently, Kauffman was a shareholder in the securities litigation
department of Berger & Montague, a position he held since joining the
Philadelphia law firm in 2003. Prior to that, he was an equity partner in the
commercial litigation department of the law firm of Reed Smith, LLP in
Philadelphia. Kauffman began his law career with Reed Smith in 1988. In
1992, he left the firm to serve as an assistant United States attorney in the
criminal and asset forfeiture divisions of the U.S. Attorney's Philadelphia
office. Kauffman returned to Reed Smith in 1996, and became an equity partner
in 1997.
Kauffman earned a bachelor's degree from the University of Pennsylvania
and his juris doctor from the University of Pennsylvania Law School.
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
http://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.
SOURCE Harleysville Group Inc.
-0- 10/28/2004
/NOTE TO EDITORS: Photographs of Bruce Magee and Robert Kauffman are
available upon request./
/CONTACT: Mark Cummins (Investors), +1-215-256-5025,
mcummins@harleysvillegroup.com; or Randy Buckwalter (Media), +1-215-256-5288,
rbuckwalter@harleysvillegroup.com, both of Harleysville Group/
/Web site: http://www.harleysvillegroup.com /
(HGIC)
CO: Harleysville Group Inc.
ST: Pennsylvania
IN: INS FIN
SU: PER