HARLEYSVILLE, Pa. -- (Business Wire)
Harleysville Mutual Insurance Company and Harleysville Group Inc.
(NASDAQ:HGIC) today announced that their policyholders and shareholders,
respectively, have voted to approve the adoption of the proposed merger
with Nationwide Mutual Insurance Company.
“We very much appreciate the overwhelming endorsement of both our
policyholders and shareholders in approving the merger with Nationwide,”
commented Michael L. Browne, Harleysville’s president and chief
executive officer. “The combination of Harleysville and Nationwide
represents a strong strategic business fit that makes sense for both
organizations. As partners within the Nationwide family of companies,
Harleysville and Allied Insurance will establish a national independent
agency distribution network, bringing together a wealth of talent and
expertise in the marketplace.”
At a special meeting of Harleysville Mutual policyholders, 14.1 percent
of eligible votes were cast by policyholders as of the record date of
March 1, 2012, and 87.4 percent of the votes were cast in favor of the
adoption of the merger agreement. At a special meeting of Harleysville
Group shareholders, 89.9 percent of eligible votes were cast by
shareholders as of the record date of February 29, 2012, and 99.8
percent of the votes were cast in favor of the adoption of the merger
The Pennsylvania Insurance Department already has approved the merger.
In addition, Nationwide Mutual policyholders have voted in favor of the
merger. Regulatory approval is still required in certain other states.
The transaction is expected to close sometime in the second quarter.
Under the terms of the merger agreement, Harleysville Mutual
policyholders will become policyholders and members of Nationwide
Mutual, and Nationwide will acquire all of the publicly held shares of
common stock of Harleysville Group for $60.00 per share in cash.
Harleysville Insurance is a leading super-regional provider of insurance
products and services for small and mid-sized businesses, as well as for
individuals, and ranks among the top 60 U.S. property/casualty insurance
groups based on net written premiums. As a Trusted Choice®
company partner, Harleysville distributes its products exclusively
through a network of independent agents primarily across 32 states.
Harleysville is ranked in the most recent InformationWeek 500,
the publication’s annual listing of the most innovative information
technology organizations in the U.S., and has been included on the list
in each of the last six years. Harleysville Mutual Insurance Company
owns approximately 54 percent of Harleysville Group Inc. (NASDAQ: HGIC),
a publicly traded holding company for six regional property/casualty
insurance companies collectively rated A (Excellent) by A.M. Best
Company. Harleysville Group is listed on the NASDAQ Global Select
Market, which is comprised of the top third of all NASDAQ member
companies and has the highest initial listing standards of any exchange
in the world based on financial and liquidity requirements. Further
information can be found on the company’s website at www.harleysvillegroup.com.
Harleysville Group Inc.
Mark Cummins (Investors)
Source: Harleysville Group Inc.
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