Eastern Alliance Insurance Group Announces Midwest Executive Succession Plan

CARMEL, Ind., July 21, 2011 /PRNewswire/ — Eastern Insurance Holdings, Inc.
(“EIHI”) (NASDAQ: EIHI) announced today the succession plan for its Regional
Business Executive position in the Midwest Regional Office. Under EIHI’s
succession plan, Mort Large will join Eastern Alliance Insurance Group (“EAIG”)
on July 21, 2011, as the Regional Business Executive for the Midwest territory,
and Mike Michael, the current Regional Business Executive, will retire from the
Company in September 2011. EAIG is an indirect wholly-owned subsidiary of EIHI.

Founded in 1997, EAIG specializes in providing workers’ compensation products
and services to businesses and self-insured clients. EAIG entered the Midwest
workers’ compensation marketplace in 2008 with the acquisition of Employers
Security Holding Company. Large will spearhead EAIG’s long-term strategic
initiatives and manage the day-to-day operations in the Midwest region. EAIG’s
Midwest regional office is located in Carmel, Indiana.

“We are pleased to have Mort join our organization,” said Michael L. Boguski,
President and Chief Executive Officer for EIHI. “Mort brings a diverse
commercial insurance background and a wealth of management experience to EAIG as
we continue to extend our brand in the Midwest territory.”

Large has more than twenty years experience in the commercial insurance
industry. He most recently served as Vice President, Underwriting Operations and
Vice President, Corporate Underwriting, for Employers Insurance, and previously
served in various underwriting and management roles for The Hartford and St.
Paul Companies. Large holds a B.S. degree in Business Administration from Drake
University and a M.B.A. from Indiana University. He also has earned a Chartered
Property-Casualty Underwriting designation.

“Mike Michael has been a proven leader in the Indiana workers’ compensation
insurance market for over thirty years, achieving impressive results during his
career,” said Boguski. “His dedicated service, knowledge and experience will be
missed, and we wish him well in his future endeavors.”

EAIG specializes in providing workers’ compensation products and services to
businesses and self-insured clients. EAIG distributes its products through
independent insurance agencies and has service offices in Pennsylvania, North
Carolina, Indiana, Tennessee, and Virginia.

EIHI operates through its subsidiaries a domestic casualty insurance group
specializing in workers’ compensation, third-party administration services and a
segregated portfolio cell reinsurance business. EIHI has service offices in
Pennsylvania, North Carolina, Indiana, Tennessee and Virginia. EIHI’s Web
address is http://www.eihi.com.

FORWARD LOOKING STATEMENTS

Some of the statements contained in this press release are “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. In some cases, you can identify forward-looking statements by
terminology such as “may,” “will,” “should,” “expect,” “project,” “plan,”
“intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or
“continue,” the negative of these terms or other terminology. Forward-looking
statements are based on the opinions and estimates of management at the time the
statements are made and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those anticipated in the
forward-looking statements, therefore no assurance can be given that
management’s expectations, beliefs or projections will occur or be achieved or
accomplished. Factors that could affect the Company’s actual results include,
among others, the fact that our loss reserves are based on estimates and may be
inadequate to cover our actual losses; the uncertain effects of emerging claim
and coverage issues on our business; the geographic concentration of our
business; an inability to obtain or collect on our reinsurance protection; a
downgrade in the A.M. Best rating of our insurance subsidiaries; the impact of
extensive regulation of the insurance industry and legislative and regulatory
changes, a failure to realize our investment objectives; the effects of intense
competition; the loss of one or more principal employees; the inability to
acquire additional capital on favorable terms; a failure of independent
insurance brokers to adequately market our products; and the effects of acts of
terrorism or war. More information about these and other factors that
potentially could affect our financial results is included in our Form S-1
Registration Statement, filed with the U.S. Securities and Exchange Commission
and in our other public filings with the U.S. Securities and Exchange
Commission. Readers are cautioned not to place undue reliance upon these
forward-looking statements, which speak only as of the date of this release. The
Company undertakes no obligation to update any forward-looking statements. This
press release also does not constitute an offer to sell, or a solicitation of an
offer to buy, EIHI securities. Such an offer will be made only by means of a
prospectus.