Harleysville Insurance, Nationwide Agree to Combine

Nationwide is now on Harleysville's side.

The 96-year-old Harleysville Insurance Company will combine with Nationwide Insurance, with an estimated $13.5 billion net surplus, resulting in Harleysville policyholders becoming members and policyholders of Nationwide.

Nationwide Mutual will also acquire all shares of common stock of Harleysville Group at $60 per share in cash, according to a press release.

The agreement will also "strengthen and diversify Nationwide's business, expand its distributon footprint and increase its property and casualty commercial lines business.

Nationwide-Harleysville estimates direct written premiums to total $16 billion annually.

“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,” said Steve Rasmussen, chief executive officer of Nationwide. “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.”

“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,” said Michael Browne, president and CEO of Harleysville. “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," said Browne.