Harleysville Insurance Group shareholders have approved a merger between Harleysville and Nationwide Mutual Insurance. They have also agreed to accept $60 per share, a price well above the stock’s previous high in the mid 30’s. Under the agreement Harleysville policyholders become Nationwide policyholders and members.
The Pennsylvania Insurance Department has approved the merger, but it still needs approval from regulators in New Jersey, Ohio and Michigan, and a lawsuit some Harleysville policyholders filed against the company is working its way through the courts. They say some of the money should go to policyholders, who are the owners in theory, but in practice the executives and directors control the company.