SOUTHFIELD, Mich., June 30 MI-FMR-Sells-ARPCO
SOUTHFIELD, Mich., June 30 /PRNewswire-FirstCall/ -- First Mercury
Financial Corporation (NYSE: FMR) ("First Mercury" or the "Company") announced
today the sale of its wholly-owned subsidiary, American Risk Pooling
Consultants, Inc. and its affiliates ("ARPCO"), to York Insurance Services
Group, Inc. ("York"). The terms of the transaction were not disclosed.
ARPCO, based in Southfield, Michigan, provides pool administration
services, including underwriting, claims, loss control/risk management, and
reinsurance, to a variety of self-insured public entity pools throughout the
Midwest. York is a privately held provider of claims-handling, specialized
loss adjusting, and other insurance services based in Parsippany, New Jersey.
ARPCO will become part of York Risk Management Services, a division of York
that specializes in public entities, such as cities, townships, special
districts, and schools throughout the country.
"We are pleased to announce the successful closing of this transaction.
We believe York offers a good fit for ARPCO, its customers and employees and
will enhance ARPCO's tradition of excellent customer service," said Richard H.
Smith, chairman and chief executive officer of First Mercury. "At the same
time, the proceeds of the sale will allow First Mercury to pursue
opportunities consistent with our core strategy of entering new specialty
niche property/casualty insurance products and market segments," added Smith.
About First Mercury Financial Corporation
First Mercury Financial Corporation markets and underwrites specialty
commercial insurance products, focusing on niche and underserved segments
where the company has underwriting expertise and other competitive advantages.
During the company's 35 years of underwriting risks, First Mercury has
established CoverX(R) as a recognized brand among insurance agents and
brokers. As primarily an excess and surplus (E&S) lines underwriter, First
Mercury has developed the underwriting expertise and cost-efficient
infrastructure which has enabled it to effectively underwrite such risks.
Safe Harbor Statement
This release contains forward-looking statements that relate to future
periods and includes statements regarding our anticipated performance.
Generally, the words "anticipates," "believes," "expects," "intends,"
"estimates," "projects," "plans" and similar expressions identify forward-
looking statements. These forward-looking statements involve known and unknown
risks, uncertainties and other important factors that could cause our actual
results, performance or achievements or industry results to differ materially
from any future results, performance or achievements expressed or implied by
these forward-looking statements. These risks, uncertainties and other
important factors include, among others: our ability to maintain or the
lowering or loss of one of our financial or claims-paying ratings; our actual
incurred losses exceeding our loss and loss adjustment expense reserves; the
failure of reinsurers to meet their obligations; our inability to obtain
reinsurance coverage at reasonable prices; the failure of any loss limitations
or exclusions or changes in claims or coverage; our lack of long-term
operating history in certain specialty classes of insurance; our ability to
acquire and retain additional underwriting expertise and capacity; the
concentration of our insurance business in relatively few specialty classes;
competition risk; fluctuations and uncertainty within the excess and surplus
lines insurance industry; the extensive regulations to which our business is
subject and our failure to comply with these regulations; our ability to
maintain our risk-based capital at levels required by regulatory authorities;
our inability to realize our investment objectives; and the risks identified
in our filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K. Given these uncertainties, you are cautioned not
to place undue reliance on these forward-looking statements. We assume no
obligation to update or revise them or provide reasons why actual results may
differ.
For more information on the Company, please visit the Company's website at
www.firstmercury.com
SOURCE First Mercury Financial Corporation
