Mercer Insurance Group Inc. and Financial Pacific Insurance Group Inc. announced Monday that Mercer plans to buy all the outstanding stock of Financial Pacific for $40.4 million in cash.
The transaction is to be done through a merger of a Mercer subsidiary into Financial Pacific. It is expected to close this summer.
The deal is consistent with Mercer's long-term objectives of strategically developing its commercial lines segment and of diversifying its products and geography, the Pennington, N.J., company said.
Financial Pacific in Rocklin, Calif., reported operating income of $4.6 million last year and net income of $5.9 million. It generated about $107 million of direct premiums, primarily in California, Nevada, Oregon, and Arizona, through about 300 independent agents. Financial Pacific is to operate as a subsidiary of Mercer and be included in its commercial lines segment for financial reporting purposes.
