Jan. 18, 2007 -- Reno, Nev, -- EIG Mutual Holding Company (to be renamed Employers Holdings, Inc.) today announced that it plans to conduct an initial public offering of 23,000,000 shares of its common stock. The underwriters of the offering have a 30-day option to purchase an additional 3,450,000 shares of common stock from the company at the initial public offering price to cover over-allotments, if any. The company's shares have been approved for listing on the New York Stock Exchange under the symbol “EIG,” subject to official notice of issuance.

Morgan Stanley & Co. Incorporated is the sole lead bookrunner of the offering with co-managers Cochran Caronia Waller Securities LLC, Fox-Pitt, Kelton Incorporated and Keefe, Bruyette & Woods, Inc.

Proceeds from the offering will be used (1) first, to pay all fees and expenses incurred by the company or its Nevada insurance subsidiary in connection with its conversion from a mutual insurance holding company to a stock company and the offering, and to pay the cash consideration payable to members of the company who are not eligible to receive consideration in the form of common stock, and (2) next, to pay the cash consideration payable pursuant to the plan of conversion to the eligible members of the company who elected to receive their consideration in the form of cash instead of common stock. 

EIG Mutual Holding Company and its subsidiaries specialize in workers' compensation insurance and services. The company is headquartered in Reno, Nevada.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective.  These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.  A copy of the prospectus relating to these securities may be obtained when available from Morgan Stanley & Co. Incorporated, 180 Varick Street, New York, New York 10014, Attention:  Prospectus Department, or by e-mailing prospectus@morganstanley.com.

This press release contains certain forward-looking statements about the company's conversion from a mutual insurance holding company to a stock corporation and the concurrent initial public offering of common stock of the company. Forward-looking statements include statements regarding the market for the stock and anticipated future results and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include delays in consummation of the conversion and initial public offering, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business of the company and its subsidiaries.

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Copyright © 2006 EMPLOYERS.  All rights reserved.  EMPLOYERS is a service mark and trade name for a group of companies which provide workers' compensation insurance and services. Insurance is offered through Employers Compensation Insurance Company, except in Nevada, where insurance is offered through Employers Insurance Company of Nevada. Employers Compensation Insurance Company does not do business in all jurisdictions.  Please consult with your local EMPLOYERS Sales Executive for more information or visit www.eig.com.

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CONTACT:  Trish White, EMPLOYERS Corporate Communications Director -- E-mail: twhite@eig.com