Harleysville Group Inc. Authorizes $25 Million Share Repurchase Program; Increases Quarterly Dividend by 8 Percent to $0.325 Per

At the same time, the Board today increased the company's regular
quarterly cash dividend by 8 percent to $0.325 per share from $0.30 per
share, or to an annualized $1.30 per share from $1.20 per share. The
dividend is payable September 30, 2009, to shareholders of record on
September 15, 2009. This marks the 93rd consecutive quarter Harleysville
Group has paid a dividend since the company went public in 1986.

"These actions reflect our strong balance sheet, the steps we're taking
for future earnings growth and our ongoing commitment to managing our
capital position effectively for the benefit of our stakeholders," said
Michael L. Browne, Harleysville Group's president and chief executive
officer. "This new stock repurchase program is our fifth since June
2007. When it's completed, we will have repurchased approximately 20
percent of our outstanding shares since the middle of 2007. And, we're
proud of the fact that in our 23 years as a public company we've paid
our shareholders a dividend every quarter and our dividend has increased
every year. In fact, our dividend is up more than 70 percent in the last
three years alone."

The board authorized Harleysville Group to make purchases for a two-year
period in the open market or in privately negotiated transactions.
Additionally, the board authorized Harleysville Group to make purchases
under the terms of a Rule 10b5-1 trading plan, which allows the company
to purchase its shares at times when it ordinarily would not be in the
market because of self-imposed trading blackout periods, such as the
time preceding its quarterly earnings releases. The company currently
intends to repurchase shares in open market transactions from the public
float, and not repurchase shares from Harleysville Mutual Insurance
Company, which owns 53 percent of Harleysville Group's stock. The timing
and terms will be based on market conditions, and will be conducted in
accordance with the applicable rules of the Securities and Exchange
Commission.

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. As a Trusted Choice(R) company
partner, Harleysville distributes its products exclusively through a
network of independent agents primarily across 32 states. Harleysville
was listed recently as #30 in the InformationWeek 500, the
publication's annual listing of the most innovative information
technology organizations in the U.S., and has been ranked on the list in
each of the last three years. Harleysville Mutual Insurance Company owns
53 percent of Harleysville Group Inc. (NASDAQ: HGIC), a publicly traded
holding company for eight regional property/casualty insurance companies
collectively rated A- (Excellent) by A.M. Best Company. Harleysville
Group is listed on the NASDAQ Global Select Market, which is comprised
of the top third of all NASDAQ member companies and has the highest
initial listing standards of any exchange in the world based on
financial and liquidity requirements. Harleysville Group has paid a
dividend every quarter since the company went public in 1986, and was
recognized with a 2009 Mergent Dividend Achiever Award for its long-term
history of dividend increases. Further information can be found on the
company's Web site at www.harleysvillegroup.com.

SOURCE: Harleysville Group Inc.

Harleysville Group Inc. 
Randy Buckwalter 
215.256.5288 (office) 
267.718.3766 (cell) 
rbuckwalter@harleysvillegroup.com

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