NU Online News Service, Sept. 29, 2:41 p.m.EDT

Increased access to markets and being connected to a nationalcompany are just a few of the benefits the chief executives ofNationwide Mutual Insurance and Harleysville Mutual Insurance saythe combination of the two companies will bring to independentagents.

In an interview with NU Online News Service, Steve Rasmussen,chief executive officer of Columbus, Ohio-based Nationwide andMichael Browne, president and chief executive officer ofHarleysville, Pa.-based Harleysville Mutual, believe producers andthe carriers will benefit from the transaction announced today.

“For independent agents, this adds another carrier that has anational footprint and presence [to their portfolio],” saysRasmussen. “This adds to Nationwide’s portfolio that includesAllied and all our other independent agency companies that areroughly a third of our revenue.”

He says the addition of the Harleysville book of business andthe relationships the company has developed in the Northeast “makeus a more formidable national independent-agency company for bothcommercial and personal lines.”

Browne says the geographic strength of Harleysville east of theMississippi complements Allied Insurance, the independent agencyaffiliate of Nationwide that is strong west of the Mississippi.

“Specifically, to us, being part of Nationwide gives us accessto a wider array of products to offer to our agents,” says Browne.“I think it is a perfect strategic fit.”

Nationwide has struggled to shake off its reputation as beingsolely a personal lines exclusive agency company, saysRasmussen.

“Frankly, that’s about a third of our revenue,” he says.

It remains an important piece of the business that is growing,but it is important too for Nationwide to continue to develop theother third of its business that resides with its force ofindependent agents, with the final third being its financialservices branch, says Rasmussen.

For Harleysville’s independent agents, Rasmussen believes theywill benefit from now being able to access “a much broaderportfolio of life and financial services and retirement-savingsproducts that we are actually quite good at. So it gives them achance to be a part of that whole mix.”

Rasmussen notes that Nationwide does not have an independentagent “structural presence in the mid-Atlantic and Northeast area.”The Harleysville headquarters gives them that regional office.

“Frankly, we need one and this is the perfect platform to basethat out of here in Harleysville,” says Rasmussen.

Most of its independent-agent offices are west of theMississippi. East of the river, the company has an office inGainesville, Fla.

Browne believes independent agents will become enthusiasticabout the deal.

“I think this is a win-win for everybody,” says Browne.

Rasmussen says Nationwide has a reputation among the independentagents it works with as being a “long-term player that they like todo business with. This just adds to their equation and adds to thefootprint.”

For Nationwide’s direct agents, the acquisition does not affectthe company's platform, he says.

“They are running side-by-side with our existing independentagencies and this will just add to that,” he says.

Nationwide will get access to the knowledge and expertiseHarleysville has related to the Northeast, especially on thecommercial-lines side, which Nationwide lacks, says Rasmussen.

While Harleysville may become a part of Nationwide, the brandwill not change, says Rasmussen. The company has a significantportfolio of wholesale and retail carrier companies.

Browne, who will become president and chief operating officer ofHarleysville once the acquisition is complete, says he and othersfrom Nationwide will be meeting personally with the company’sagency partners to explain what this deal means to them.

“We like to spend time with our agents,” says Browne. “We have aclose relationship with them. We get out and talk to them. I thinkthis will generate a lot of excitement.”

“We are both well known for being relationship driven,” saysRasmussen. “So it is important for us at the top levels of thecompany to stay very connected with our producers. That doesn’tchange with this transaction in anyway.”