Harleysville Insurance Takeover

Nationwide Insurance has made an offer to buy Harleysville Group (Nasdaq:HGIC) for $60.00 per share.

Steve Rasmussen, Chief Executive Officer of Nationwide said, “This combination brings together two best-in-class companies that share a mutual heritage and a focus on meeting the long-term needs of our policyholders. With Harleysville’s expertise in commercial lines and Nationwide’s complementary geographic distribution, there will be a substantial opportunity to increase market share, while also providing our combined agents and customers access to a broader portfolio of insurance, financial and banking products.”

Michael Browne, President and Chief Executive Officer of Harleysville said, “Harleysville is very pleased to join forces with Nationwide in a transaction that will enable us to expand our business for our independent agency partners and to enter important new markets from a position of even greater strength. We are proud of our 96-year history and the longstanding success we and our independent agencies have enjoyed as a result of our partnership with one another. We remain committed to our trusted independent agency partners and to the independent agency system. I am confident that the combined organization will allow us to deliver the best products and services available to grow our independent agents’ books of business with us more effectively and efficiently. We look forward to working with Nationwide’s talented team and are very pleased that Nationwide has committed to maintaining the Harleysville brand.”

Rasmussen continued, “This transaction supports and accelerates our strategy and mission to make it easy for agents and customers to do business with Nationwide however they desire. Nationwide has invested heavily in independent agent distribution, beginning with our acquisition of Allied Insurance in 1998. While the Harleysville transactions would expand our independent agency distribution nationally, Nationwide also maintains a strong commitment to its exclusive agency partners. We’re committed to making strategic investments in all of our distribution channels as each is vital and contributes to our mission.”

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