The Commerce Group, Inc. (CGI) Directors Approve Quarterly Dividend

The Board of Directors of The Commerce Group, Inc. (NYSE:CGI) today approved a quarterly cash dividend of $0.30 per share on the issued and outstanding common stock of the Company, payable March 7, 2008 to shareholders of record at the close of business on February 25, 2008.

About The Commerce Group, Inc.

The Commerce Group, Inc. is headquartered in Webster, Massachusetts. Property and casualty insurance subsidiaries include The Commerce Insurance Company and Citation Insurance Company in Massachusetts, Commerce West Insurance Company in California, American Commerce Insurance Company in Ohio, and State-Wide Insurance Company in New York. Through its subsidiaries’ combined insurance activities, the Company is ranked as the 20th largest personal automobile insurance group in the country by A.M. Best Company, based on 2006 direct written premium information. The Company and its insurance subsidiaries are rated A+ (Superior) by A.M. Best.

Forward-Looking Statements

It should be noted that this release might contain certain statements that may be considered forward-looking statements. The Commerce Group refers you to its 2006 Form 10-K, its September 30, 2007 Form 10-Q and its Form 8-K filed February 4, 2008 for a description of the Company’s business environment and important other factors that may affect its business, including its language regarding forward-looking statements.