/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICE/

    GUELPH, ON, June 12 /CNW/ - Co-operators General Insurance Company
("Co-operators General" or the "Company") announced today that it has closed
its bought deal offering (the "Offering") of $100 million of Non-Cumulative
Redeemable Class E Preference Shares, Series C (the "Series C Preference
Shares") underwritten by a syndicate of underwriters led by Scotia Capital
Inc. and including RBC Dominion Securities Inc., CIBC World Markets Inc.,
National Bank Financial Inc., TD Securities Inc., Dundee Securities
Corporation and HSBC Securities (Canada) Inc. (collectively, the
"Underwriters").
    The Company entered in an underwriting agreement effective May 23, 2007
with the Underwriters pursuant to which the Underwriters agreed to purchase
from Co-operators General and sell to the public 4,000,000 Series C Preference
Shares at a price of $25.00 per Series C Preference Share for gross proceeds
to the Company of $100,000,000.
    Each Series C Preference Share entitles the holder thereof to receive
fixed non-cumulative preferential quarterly cash dividends in the amount of
$0.3125 per Series C Preference Share, to yield 5.00 per cent per annum.
    The Series C Shares will commence trading on the Toronto Stock Exchange
(the "TSX") on June 12, 2007 under the symbol "CCS.PR.C".
    The net proceeds of the Offering will be used for general corporate
purposes including to satisfy the payment of the redemption price for the
Company's Class E Preference Shares, Series A (the "Series A Shares").
    The Series A Shares will be redeemed on July 3, 2007 with an effective
date of June 30, 2007. The redemption price for each Series A Share will be
$25.00 plus declared, but unpaid dividends of $0.34375 per Series A Share. The
Company has received the approval of the Superintendant of Financial
Institutions in respect of the redemption of the Series A Shares.
    The Series C Preference Shares have not been and will not be registered
in the United States under the Securities Act of 1933, as amended, and may not
be offered, sold or delivered in the United States absent registration or
applicable exemption from the registration requirement of such Act. This press
release does not constitute an offer to sell or a solicitation to buy the
Series C Preference Shares in the United States and any public offering of the
shares in the United States must be made by means of a prospectus.

    About Co-operators General
    --------------------------

    With assets of approximately $4.5 billion, Co-operators General Insurance
Company is the leading Canadian-owned multi-product property and casualty
insurance company. Co-operators General preference shares are listed on the
Toronto Stock Exchange under the trading symbol CCS.PR.A. The company is part
of The Co-operators, a national group of companies owned by 37 Canadian
co-operative organizations that focuses on insurance as well as investment
products and property development.
    Co-operators General Insurance Company can be found on the internet on
www.cooperators.ca and on www.sedar.com

    Forward-Looking Statements
    --------------------------

    This news release includes Forward-Looking statements with respect to
Co-operators General, including its business operations and strategy as well
as its financial performance and condition. These statements generally can be
identified by the use of Forward-Looking words such as: "may", "will",
"expect", "intend", "estimate", "anticipate", "believe", or "continue" or the
negative thereof or similar variations. Although management of Co-operators
General believe that the expectations reflected in such Forward-Looking
statements are reasonable, such statements involve risks and uncertainties and
actual results may differ materially from those expressed or implied by such
Forward-Looking statements. Important factors that could cause actual results
to differ materially from expectations include among other things, general
economic conditions worldwide, market factors, including global capital market
activity, interest rate and currency value fluctuations, business competition,
changes in government regulations or in tax laws, technological changes,
changes in consumer demand for the products and services of Co-operators
General, catastrophic events, political conditions and developments.
Co-operators General does not undertake to update any Forward-Looking
statements.

    %SEDAR: 00008192EF

For further information: Bill McPhee, Vice-President, Corporate Finance,
(519) 824-4400