LOS ANGELES, Oct. 15 /PRNewswire-FirstCall/ -- Mercury General
Corporation (the "Company") (NYSE: MCY) announced today that Mercury
Casualty Company, its largest insurance subsidiary, has entered into a
definitive agreement with Aon Corporation for the purchase of Auto
Insurance Specialists, Incorporated ("AIS"). AIS is a major producer of
automobile insurance in the state of California and the Company's largest
independent broker producing over $400 million of direct premiums written,
which represented 14% of the Company's direct premiums written during 2007.
The transaction is expected to close in the first quarter of 2009.
The purchase price of the transaction is $120 million plus a potential
earn out of up to $34.7 million, payable over the two year period following
the transaction closing date. The Company plans to finance the purchase
through a term loan, the terms of which are under negotiation. The Company
expects the acquisition to be slightly accretive to earnings.
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.
This news release contains forward-looking statements about the Company
and the proposed transaction with Aon Corporation that involve material
risks and uncertainties. Many factors, including several that are beyond
the Company's control, could cause actual results to differ significantly
from the expectations described in the forward-looking statements. Among
these factors are the receipt of necessary consents and approvals and the
terms on which the Company obtains financing to complete the transaction.
Other factors that may cause actual results to differ from the
forward-looking statements contained herein and that may affect the
Company's prospects are included in the Company's other filings with the
Securities and Exchange Commission. The Company expressly disclaims any
obligation to publicly release any updates or revisions to any such
forward-looking statement to reflect any change in its expectations or any
change in events, conditions or circumstances on which any such statement
is based.
SOURCE Mercury General Corporation
 back to top
Related links:
http://www.mercuryinsurance.com
CONTACT:
Theodore Stalick, VP|CFO of Mercury General
Corporation, +1-323-937-1060
|
