GUELPH - Co-operators General Insurance Company announced that it has issued an additional 600,000 Non-Cumulative 5-Year Rate Reset Class E Preference Shares, Series D (the "Series D Preference Shares") at a price of $25.00 per Series D Preference Share for gross proceeds to the Company of $15,000,000 pursuant to the exercise by a syndicate of underwriters co-led by Scotia Capital Inc. and TD Securities Inc. and including BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Blackmont Capital Inc., Dundee Securities Corporation and Industrial Alliance Securities Inc. (collectively, the "Underwriters") of their over-allotment option, as described in the short form prospectus of the Company dated May 14, 2009. Including the over-allotment option, total gross proceeds of the Company's public offering of Series D Preference Shares (the "Offering") were $115,000,000.

The Series D Preference Shares yield 7.25% per annum, payable quarterly, as and when declared by the board of directors of the Company (the "Board"), for the initial to, but excluding, June 30, 2014. On June 30, 2014 and on June 30 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 5.21%. Holders of the Series D Preference Shares have the right to convert their shares into Non-Cumulative Floating Rate Class E Preference Shares, Series E of the Company (the "Series E Preference Shares"), subject to certain conditions and the Company's right to redeem the Series D Preference Shares as described below, on June 30, 2014 and on June 30 every five years thereafter. Holders of the Series E Preference Shares will be entitled to receive a quarterly floating rate dividend, as and when declared by the Board, equal to the then current three-month Government of Canada Treasury Bill yield plus 5.21%. Holders of the Series E Preference Shares may convert their Series E Preference Shares into Series D Preference Shares, subject to certain conditions and the Company's right to redeem the Series E Preference Shares as described below, on June 30, 2019 and on June 30 every five years thereafter.

The Series D Preference Shares are not redeemable prior to June 30, 2014. On June 30, 2014 and on June 30 every five years thereafter, the Company may, subject to certain conditions, redeem all or any part of the Series D Preference Shares at a cash redemption price per share of $25.00 together with all declared and unpaid dividends. The Company may redeem all or any part of the Series E Preference Shares at a cash redemption price per share of $25.00 in the case of redemptions on June 30, 2019 and on June 30 every five years thereafter or $25.50 in the case of redemptions on any other date after June 30, 2014, together in each case, with all declared and unpaid dividends to, but excluding, the redemption date.

The Series D Preference Shares trade on the Toronto Stock Exchange (the "TSX") under the symbol "CCS.PR.D". The net proceeds of the Offering will be used for general corporate purposes.