Business & Finance
Business and Finance
Business and Finance
Tue, November 18, 2008
Mon, November 17, 2008 
HARLEYSVILLE, Pa.--([ BUSINESS WIRE ])--Harleysville Group Inc. (NASDAQ:HGIC) today announced that its president and chief executive officer, Michael L. Browne, adopted a written stock trading plan, in compliance with SEC Rule 10b5-1, and the company's insider trading policies and stock ownership guidelines.
Browne, age 62, entered into the written trading plan in order to effect the exercise of a maximum of 92,648options to purchase HGIC common stock and to sell the shares upon any such exercise. These options were granted to Browne either between 2000 and 2003 when he was a non-executive director of HGIC, or between 2004 and 2005 following his becoming president and CEO. These options represent approximately 18 percent of his total HGIC equity holdings, which equity holdings include owned stock, stock options, restricted stock and restricted stock units. The trading plan allows Browne to diversify his investment portfolio in an orderly, pre-arranged manner, and vests authority in his broker to effect any such sales. Sales under the 10b5-1 trading plan will occur between January 14, 2009, and January 14, 2010, if the established pre-determined sale parameters are triggered.
A written trading plan established under SEC Rule 10b5-1 at a time when a director or officer of a public company is not in possession of material non-public information, allows such director or officer to authorize a broker to trade securities in a pre-determined manner, and prohibits the director or officer from having influence over the sales made under the plan. All transactions that actually occur pursuant to Browne's 10b5-1 trading plan will be disclosed in his filings with the Securities and Exchange Commission.
Harleysville Insurance is a leading regional provider of insurance products and services for small and mid-sized businesses, as well as for individuals, and ranks among the top 60 U.S. property/casualty insurance groups based on net written premiums. Harleysville was listed recently as #30 in the InformationWeek 500, the publication's annual listing of the most innovative information technology organizations in the U.S., and has been ranked on the list in each of the last three years. Harleysville Mutual Insurance Company owns 52 percent of Harleysville Group Inc. (NASDAQ:HGIC), a publicly traded holding company for eight regional property/casualty insurance companies collectively rated A- (Excellent) by A.M. Best Company. Harleysville Group is listed on the NASDAQ Global Select Market, which is comprised of the top third of all NASDAQ member companies and has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Harleysville Insurance—which distributes its products exclusively through independent insurance agencies and reflects that commitment to its agency force by being a Trusted Choice® company partner—currently operates in 32 eastern and midwestern states. Further information can be found on the company's Web site at [ www.harleysvillegroup.com ].
Certain of the statements contained herein (other than statements of historical facts) are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include estimates and assumptions related to economic, competitive and legislative developments. These forward-looking statements are subject to change and uncertainty that are, in many instances, beyond the company's control and have been made based upon management's expectations and beliefs concerning future developments and their potential effect on Harleysville Group Inc. There can be no assurance that future developments will be in accordance with management's expectations so that the effect of future developments on Harleysville Group will be those anticipated by management. Actual financial results, including operating return on equity, premium growth and underwriting results, could differ materially from those anticipated by Harleysville Group depending on the outcome of certain factors, which may include changes in property and casualty loss trends and reserves; catastrophe losses; the insurance product pricing environment; changes in applicable law; government regulation and changes therein that may impede the ability to charge adequate rates; performance of and instability in the financial markets; investment losses; fluctuations in interest rates; availability and price of reinsurance; and the status of the labor markets in which the company operates.
