SOUTHFIELD, Mich., Nov. 9, 2010 /PRNewswire-FirstCall/ -- First
Mercury Financial Corporation (NYSE: FMR) ("First Mercury" or
the "Company") announced today that it has completed the previously
announced acquisition of Valiant Insurance Group, Inc., a
subsidiary of Ariel Holdings, Ltd. In connection with the closing
of the transaction, A.M. Best Co. has affirmed the financial
strength ratings of A- (Excellent) of Valiant Insurance Company and
Valiant Specialty Insurance Company as members of the First Mercury
Group. In addition, the financial size category of Valiant
Insurance Company and Valiant Specialty Insurance Company increased
to IX.
About First Mercury Financial Corporation
First Mercury Financial Corporation provides insurance products
and services primarily to the specialty commercial insurance
markets, focusing on niche and underserved segments where we
believe that we have underwriting expertise and other competitive
advantages. During the Company's 37 years of underwriting risks,
First Mercury has developed the underwriting expertise and
cost-efficient infrastructure which has enabled us to effectively
underwrite such risks. Our risk-taking subsidiaries offer insurance
products through our distribution subsidiaries: CoverX®, FM Emerald
and AMC, which are recognized brands among insurance producers.
Additional Information
First Mercury has entered into a Merger Agreement to be acquired
by Fairfax Financial Holdings Limited. In connection with the
proposed transaction, First Mercury will file a proxy statement
with the SEC. INVESTORS AND STOCKHOLDERS ARE ADVISED TO READ THE
PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC
WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE MERGER AND THE PARTIES THERETO.
Investors and stockholders may obtain free copies of the proxy
statement and other documents filed by First Mercury (when
available), at the SEC's Web site at www.sec.gov or the Investor
Relations section of First Mercury's Web site at
www.firstmercury.com. The proxy statement and such other documents
may also be obtained, when available, for free from First Mercury
by directing such request to Investor Relations, First Mercury
Financial Corporation, 29110 Inkster Road, Suite 100, Southfield, Michigan 48034, Attn: Edward
LaFramboise, Vice President, Finance, telephone: (248)
213-0406.
First Mercury and its directors, executive officers and other
members of its management and employees may be deemed to be
participants in the solicitation of proxies from First Mercury's
stockholders in connection with the proposed transaction.
Information concerning the interests of those persons is set forth
in First Mercury's proxy statement relating to the 2010 annual
stockholder meeting and annual report on Form 10-K for the fiscal
year ended December 31, 2009, both
filed with the SEC, and will also be set forth in the proxy
statement relating to the transaction when it becomes
available.
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: recent and future events and circumstances
impacting financial, stock, and capital markets, and the responses
to such events by governments and the financial communities; the
impact of catastrophic events and the occurrence of significant
severe weather conditions on our operating results; 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 estimates for accrued
profit sharing commissions are based on loss ratio performance and
could be adversely impacted if the underlying loss ratios
deteriorate; our inability to obtain reinsurance coverage at
reasonable prices; the failure of any loss limitations or
exclusions or changes in claims or coverage; our ability to
successfully integrate acquisitions that we make; our ability to
realize anticipated benefits from acquisitions; 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; the
increasingly competitive property and casualty marketplace;
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; an economic downturn or other economic conditions
adversely affecting our financial position; 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.
The Company uses the Investor Relations page of its website
at www.firstmercury.com to make information available
to its investors and the public.
SOURCE First Mercury Financial Corporation