News Releases

ZURICH--(BUSINESS WIRE)--ACE Limited (NYSE:ACE) announced today that it has entered into a definitive agreement to acquire Penn Millers Holding Corporation (PMHC) (NASDAQ: PMIC) for $107 million in cash.

PMHC’s primary insurance subsidiary, Penn Millers Insurance Company, is a well-established underwriter of agri-related insurance in the U.S., providing specialty property and casualty insurance coverages to companies that manufacture, process and distribute agricultural products. Based in Wilkes-Barre, Pa., the company has served the agribusiness market since 1887 and currently operates in 34 states.

“The acquisition of Penn Millers will provide us with an established, specialty niche business that complements our current agricultural market capabilities offered through our Rain and Hail crop insurance and ACE Westchester excess and surplus lines businesses,” said Brian Dowd, Office of the Chairman, ACE Limited. “This acquisition offers us the opportunity to expand our agribusiness presence. We expect that the addition of Penn Millers to the ACE Group will produce results that are immediately accretive to our earnings, return on equity and book value per share. We expect to achieve a return on capital in excess of our target hurdle rate within a short period of time.”

The transaction, which is subject to regulatory approvals, PMHC shareholder approval and other customary closing conditions, is expected to be completed by the end of the first quarter of 2012.

The ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at:www.acegroup.com.

Cautionary Statement Regarding Forward-Looking Statements:

All forward-looking statements made in this press release, related to the anticipated acquisition of Penn Millers Holding Corporation, potential post-acquisition performance or otherwise, reflect ACE’s current views with respect to future events, business transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, ACE’s forward-looking statements related to Penn Millers Holding Corporation and the anticipated acquisition could prove incorrect if the transaction were to not close, if Penn Millers Holding Corporation and its subsidiaries were to perform differently than currently expected by ACE or if anticipated expense-related efficiencies are not realized. More generally, the businesses of ACE and Penn Millers Holding Corporation could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war, and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.