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Nationwide to Acquire Harleysville in $800 Million Deal

Nationwide Mutual Insurance Co. will acquire Harleysville Mutual Insurance Co. in a deal valued at around $800 million, both companies said in an announcement on...
October 4, 2011

Nationwide Mutual Insurance Co. will acquire Harleysville Mutual Insurance Co. in a deal valued at around $800 million, both companies said in an announcement on September 29.

Michael Browne, president and CEO of Harleysville says the transaction "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."

The National Underwriter reports that under the deal, which is expected to close early next year, Harleysville Mutual will merge with Nationwide Mutual while Harleysville Group, the publicly traded company, will become a newly formed subsidiary of Nationwide Mutual. Under the agreement, Harleysville will join Nationwide's property and casualty independent agency business unit under the Harleysville brand. Its current headquarters in Harleysville, Pa., will "serve as an integral part of the combined company's national, independent agency-based platform." Browne will become the president and chief operating officer of the Harleysville company.

Steve Rasmussen, chief executive officer of Columbus, Ohio-based Nationwide, said: "For independent agents, this adds another carrier that has a national footprint and presence [to their portfolio]," says Rasmussen. "This adds to Nationwide's portfolio that includes Allied and all our other independent agency companies that are roughly a third of our revenue."

Read more on the merger of Nationwide and Harleysville: Nationwide & Harleysville Discuss Merger Benefits for Independent Agents (National Underwriter 9/29/2011)