Mercury General Corporation Announces Agreement to Acquire Workmen's Auto Insurance Company
LOS ANGELES, Oct. 23, 2014 /PRNewswire/ -- Mercury General Corporation (NYSE-MCY) announced today that it has entered into a definitive agreement for the purchase of Workmen's Auto Insurance Company ("Workmen's"), subject to regulatory approval. The purchase price is $8 million and the transaction is expected to close during the first quarter of 2015.
Workmen's is a Los Angeles based auto insurance company specializing in underwriting non-standard personal auto insurance, predominantly in California. At June 30, 2014, Workmen's reported statutory surplus of $9.2 million. Net premiums earned for the year-ended December 31, 2013 were $34.3 million and for the six-month period ended June 30, 2014 were $15.1 million.
Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states. For more information, visit the Company's website at http://www.mercuryinsurance.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the demand for the Company's insurance products, inflation and general economic conditions, including general market risks associated with the Company's investment portfolio; the accuracy and adequacy of the Company's pricing methodologies; catastrophes in the markets served by the Company; uncertainties related to estimates, assumptions and projections generally; the possibility that actual loss experience may vary adversely from the actuarial estimates made to determine the Company's loss reserves in general; the Company's ability to obtain and the timing of the approval of premium rate changes for insurance policies issued in states where the Company operates; legislation adverse to the automobile insurance industry or business generally that may be enacted in the states where the Company operates; the Company's success in managing its business in non-California states; the presence of competitors with greater financial resources and the impact of competitive pricing and marketing efforts; changes in driving patterns and loss trends; acts of war and terrorist activities; court decisions and trends in litigation and health care and auto repair costs and marketing efforts; and legal, regulatory and litigation risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see the Company's filings with the Securities and Exchange Commission.
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SOURCE Mercury General Corporation