RENO, Nev., Jan. 30 /PRNewswire-FirstCall/ -- EIG Mutual Holding Company (to be renamed Employers Holdings, Inc.) (NYSE: EIG) today announced that its initial public offering of 26,750,000 shares of common stock priced at $17.00 per share. All of the shares of common stock are being sold by the Company. The Company has granted the underwriters an option to purchase up to 4,012,500 shares of common stock to cover over-allotments, if any.

The shares will begin trading on January 31, 2007, on the New York Stock Exchange under the symbol "EIG." The offering is expected to close, and the Company's concurrent conversion from a mutual insurance holding company to a stock corporation is expected to take effect on February 5, 2007.

The net proceeds to the Company 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 the Company's conversion 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.

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

The 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, and declared effective by, the Securities and Exchange Commission. 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 the registration or qualification under the securities laws of any such State.

Copies of the final prospectus relating to this offering may be obtained from Morgan Stanley & Co. Incorporated, 180 Varick Street, New York, New York, 10014, Attention: Prospectus Department, or by emailing 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 acts. 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 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.

CONTACT: Vicki Erickson, Investor Relations Director, (775) 327-2794,
verickson@eig.com
Trish White, Corporate Communications Director, (775) 327-2636,
twhite@eig.com

Copyright (C) 2007 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.