Employers Holdings, Inc. Acquisition Of AmCOMP Brings Its Workers' Compensation Insurance Expertise To 29 States


Reno, NV  (CompNewsNetwork) - Employers Holdings, Inc. a Nevada-based company whose subsidiaries are specialty providers of workers' compensation insurance specializing in small businesses, today announced the completion of its acquisition of AmCOMP Incorporated (“AmCOMP”) (NASDAQ: AMCP) in a transaction valued at approximately $223.5 million, including the assumption of approximately $35.1 million in debt. The acquisition expands EMPLOYERS workers' compensation insurance operations to 29 states and 17 branch offices, and significantly advances the EMPLOYERS vision of being the leader in the property and casualty insurance industry specializing in workers' compensation.

Under the terms of the merger, holders of AmCOMP's approximately 15 million common shares received $12.15 in cash for each share. EMPLOYERS financed the purchase price through a combination of cash and debt.

Douglas D. Dirks, President and Chief Executive Officer of EMPLOYERS, said, "This acquisition accelerates our expansion strategy and will diversify and increase our existing premium base. We also believe the transaction will result in meaningful synergies and expense-related efficiencies.”

Business operations at EMPLOYERS have historically been focused in the Western United States, while AmCOMP's focus has been in the Southeast and Midwest. Only slightly more than 1% of EMPLOYERS current business is in states where AmCOMP conducts business, with virtually no overlap in the markets of the two companies.

Employers Holdings, Inc. is a holding company with subsidiaries that are specialty providers of workers' compensation insurance and services focused on select, small businesses engaged in low-to-medium hazard industries. Following the acquisition, the company's insurance subsidiaries now include Employers Insurance Company of Nevada and Employers Compensation Insurance Company, both rated A- (Excellent) by the A.M. Best, and AmCOMP Preferred Insurance Company and AmCOMP Assurance Corporation. Additional information can be found at: www.employers.com.

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