UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
| PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Date of Report (Date of earliest event reported): November 26, 2007 |
HARLEYSVILLE GROUP INC. |
| (Exact name of registrant as specified in its charter) |
Delaware | 0-14697 | 51-0241172 |
| (State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer |
| incorporation or organization) | | Identification No.) |
355 Maple Avenue, Harleysville, PA 19438-2297 |
| (Address of principal executive offices) (Zip Code) |
Registrant’s telephone number, including area code: (215) 256-5000 |
Not Applicable |
| (Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)
ITEM 8.01. OTHER EVENTS.
On November 26, 2007, Harleysville Group Inc. announced that its board of directors and the board of Harleysville Mutual Insurance Company each separately approved an amendment to their intercompany pooling agreement that will adjust Harleysville Group’s share of the pool to 80%, effective January 1, 2008. The proposed amendment is subject to regulatory approval by various state insurance departments.
Harleysville Mutual Insurance Company, and its property and casualty insurance company subsidiary, and the eight property and casualty insurance companies that are subsidiaries of Harleysville Group are parties to the intercompany pooling agreement whereby all premiums, losses and expenses for each individual company’s business are shared in a pool. The pooling arrangement, which was established in 1986, is designed to produce more consistent underwriting results over the long term by spreading financial risk among the base of pool members.
There are two significant financial impacts associated with this change in pool share. First, at the close of the transaction there will be a transfer of assets and liabilities from Harleysville Mutual and its subsidiary to the various Harleysville Group subsidiaries. This transfer will include $190 million of investments. Second, the Harleysville Group subsidiaries, through this increase in their pool share, are expected to accrue additional written and earned premiums of approximately $90 million annually, which estimate is based upon the premiums during the most recently completed year of 2006.
A copy of the press release announcing the changes in the intercompany pooling arrangement is provided as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
Number Description
99.1 Press Release issued November 26, 2007
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | HARLEYSVILLE GROUP INC. | |
| | Registrant | |
| | | | |
| November 29, 2007 | By: | /s/Robert A. Kauffman | |
| | | Robert A. Kauffman | |
| | | Senior Vice President, Secretary, | |
| | | General Counsel & Chief Governance Officer | |
