“Harleysville and Nationwide have complementary product lines, and together the companies offer more choices to policyholders,” Consedine said. “I also applaud Nationwide’s decision and commitment to preserve the Harleysville culture and to keep jobs here in Pennsylvania.” 

The merger agreement is not final until it is adopted by a majority vote of Harleysville Mutual members (in person, by proxy, by phone or Internet) at a special meeting that is to be held later this month. Michigan, Ohio, and New Jersey Insurance Departments must also approve the merger.

Under the terms of the order, Harleysville Mutual policyholders will become policyholders and members of Nationwide Mutual.  In turn, Nationwide is acquiring all of the publicly held shares of common stock of Harleysville Group. Public stockholders of Harleysville Group will receive $60 per share in cash.

The order also states that for a period of three years, Nationwide cannot close, re-domesticate or cease business activity from the corporate office in Harleysville or any other office located in Pennsylvania without the department’s approval. Harleysville will continue to write business under the Harleysville brand for at least two years.

The department evaluated the proposal against a set of statutory standards, including whether the transaction is in the public interest, will lessen competition, or be hazardous to the insurance-buying public. Standards also focused on financial solvency; the competence, experience, and integrity of company management; the fairness and reasonableness of any changes in business operations, as well as compliance with state laws.

Harleysville Mutual has operated since 1917 and has more than $355 million in direct written premium primarily in the Eastern and Midwestern United States. The company offers a variety of property-casualty products and focuses on insurance services for small and mid-sized businesses, as well as individuals, including business insurance, human services programs, inland marine coverage, flood and personal insurance.

Nationwide Mutual Insurance Company, based in Columbus, Ohio, has direct written premium of more than $3.4 billion. The company provides insurance and financial services, including auto insurance, motorcycle, boat, homeowners, pet, life insurance, farm, commercial insurance, annuities, mortgages, mutual funds, pensions, long-term savings plans and specialty health services.

The approving order, filing and related information are available on the department’s website at www.insurance.pa.gov.

NATURAL DISASTER LOSSES IN THE UNITED STATES, 2011

 

 

Due to the natural disasters that occurred in 2011, and the unprecedented amount of claims that were paid, we are beginning to see rates increases from our insurance carriers.  We understand no one enjoys rate increases.  However, for the insurance companies to provide their services, and payout when claims occur, the rates need to be adequate.

Our own 2011 local disasters in Bucks County included the following events:

• August 23, 2011      Earthquake
• August 28, 2011      Hurricane Irene
• September 8, 2011 Tropical Storm Lee
• October 29, 2011    Pre-Winter Snow and Ice Storm

This was a two-month time frame in our agency that we hope never to repeat.  The staggering number of claims we handled for our clients was beyond compare.  Thank goodness for our wonderful staff who were empathetic and assisted our clients through the claims process.  Our carriers deployed extra claims adjusters and had extra claims staff manning the phones to take our claim reports.  This enabled all of us to work with you through the recovery process.  This was truly a team effort to service this unprecedented volume of claims. 

As an independent agency, we represent multiple carriers.  We are working hard to reprice your coverages among the carriers we represent when there is an excessive increase at renewal.  Please call us at 215-579-7310 so we may address any concerns you may have.

According to a recent survey conducted by AAA, the average payout in a fatal automobile accident doubled between 2005 to 2009 from $3.24 million to $6 million.

Cost of deadly vehicle crashes has risen greatly, AAA data show

Fatal car crashes cost an average of $6 million per accident in 2009 when considering 11 factors, including property damage, legal costs and lost quality of life, according to a report from AAA. The previous such study, in 2005, showed the average cost of a fatal accident was $3.24 million. The new study involved financial data for 99 urban areas and found the total cost of those cities’ fatal crashes to be $299.5 billion, compared with the $97.7 billion cost of traffic congestion. Injury-only accidents cost an average of $126,000 each in 2009, compared with $68,170 in 2005, the data show.

Read: Vehicle Crashes Cost Millions

Call us at 215-579-7310 to discuss this important coverage.

Lisa Parry Becker on Summer of 2011 disasters

In addition to running our family-owned independent insurance agency with my dad and brother, I travel around the country working with other insurance agents, carriers and technology vendors to advance insurance automation for independent agents.

Efficient technology lets us serve our clients in the best way possible. As an independent agency, we provide our clients with choices for their insurance carriers and coverages.  Because we work—and interact electronically—with a number of insurance companies, the ability to offer choices requires a strong understanding of technology.  With proper automation in place, we can spend more time advising our clients and less time on our carrier’s systems.  As an aside, I have resolved plenty of situations for my clients from the road thanks to the technology we have put in place.

Looking south at the mid-point between Lambertville and New Hope

The Real Secret
As much as I enjoy traveling and working with my industry friends on big issues that impact independent insurance agents, I am always happy to return home to my family, clients and friends.  Beyond living in a beautiful part of the country, the real secret I wanted to share is about one of my favorite local places: the mid-point on the bridge that connects New Hope to Lambertville.  (For history and bridge buffs, the current steel truss bridge dates to 1904.  The original wooden bridge was constructed in 1814 and later destroyed by flood.  I’ll share more on local floods in an upcoming blog post.)

The best time to experience the bridge is during an early morning walk—before the towns start bustling with activity for the day.  Every morning, the view is different: basking or swimming turtles, fish eluding fishermen, solo rowers, crew teams, mist on the river, and the list goes on.  The best view from the mid-point on the bridge is looking south and catching a glimpse of Bowman’s Tower through the morning fog.

After spending a little time observing what’s happening on the river, the next best thing is to window shop antiques in Lambertville and stroll past the stores in New Hope.  If you are a book lover, as I am, then you need some contemplative moments in front of Farley’s book store.  They are independent, just like we are.  Their reading lists and staff picks are wonderful.

After you take in all that Lambertville and New Hope have to offer, make your shopping list and come back with your wallet.  Once you find and purchase that must have item, call us at the agency.  I’m confident we can obtain an insurance rider for your new treasure!

Harleysville is already well capitalized with over one billion dollars in net written premiums.  Following the merger, the combined organization will have an estimated $16 billion dollars in net written premiums.  Harleysville’s current A.M. Best rating of A could be upgraded to Nationwide’s A+ A.M. Best rating following the transaction.

Harleysville could be in a better position to diversify its offerings and enter new markets, e.g., financial services, professional and specialty lines.  With greater access to reinsurance, the capacity to write additional coverages along the New Jersey coastline has been proposed.

Harleysville will return to its roots as a mutual company.  As a mutual company, ownership resides with policyholders, not stockholders, whose primary concern is with quarterly earnings.

As a fifth generation family owned and operated independent agency, we are committed to remaining independent and representing numerous insurance carriers.  This enables us to provide you with better access to a multitude of insurance products and services at a competitive price.

Contact us: Parry & Son Insurance

Read more: Harleysville Press Release

Read more: InsuranceJournal.com, September 29, 2011