Employers Holdings Completes AmCOMP Purchase

Reno, Nev.-based workers' compensation insurer Employers Holdings Inc. announced today it has completed its $223.5 million acquisition of AmCOMP Incorporated.

The transaction, which includes the assumption of approximately $35.1 million in debt, will expand Employers' workers' compensation insurance operations to 29 states and 17 branch offices, the company said.

Employers said the transaction will significantly advance its 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, Employers' president and chief executive officer, 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.”

Employers said its business operations have historically been focused in the Western United States, while AmCOMP's focus has been in the Southeast and Midwest, and only slightly more than 1 percent of Employers' current business is in states where AmCOMP conducts business.

Employers Holdings Inc. said its workers' compensation subsidiaries are insurance specialty providers focused on select, small businesses engaged in low- and medium-hazard industries.

Following the acquisition, the company's insurance subsidiaries now include Employers Insurance Company of Nevada and Employers Compensation Insurance Company as well as AmCOMP Preferred Insurance Company and AmCOMP Assurance Corp.