Harleysville Mutual Insurance Company and Nationwide Mutual Insurance Company would merge under a filing received by the Pennsylvania Insurance Department, Insurance Commissioner Mike Consedine announced on Tuesday.
If approved, Harleysville Mutual policyholders would become policyholders and members of Nationwide Mutual, and Nationwide Mutual would acquire all of the publicly held shares of common stock of Harleysville Group. Each public stockholder of Harleysville Group would receive a set dollar amount per share in cash.
The department will evaluate the proposal against a set of standards, including whether the transaction will lessen competition, produce new efficiencies, or be hazardous to the insurance-buying public. Standards also focus 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 all other state laws. Public input will be part of the department's review process.
Other regulatory bodies must also approve the merger before it becomes effective, including the Ohio Insurance Department, the state in which Nationwide is domiciled. The policyholders for Harleysville Mutual and