SOUTHFIELD, Mich., Aug. 2 /PRNewswire-FirstCall/ -- First Mercury
Financial Corporation (NYSE: FMR) ("First Mercury" or the
"Company") today announced results for the second quarter ended
June 30, 2010.
Highlights for the second quarter 2010 include:
- Book value per share of $16.75
- Net income of $4.1 million, or
$0.23 per diluted share
- Operating net income of $6.2
million, or $0.35 per diluted
share
- Net investment income increase of 18.0 percent
- A.M. Best revised outlook for the Company's insurance
subsidiaries to positive from stable
- Announced definitive agreement to acquire Valiant Insurance
Group, Inc. ("Valiant") for tangible book value as previously
disclosed
- Fifth consecutive quarterly dividend of $0.025 per share
"We maintained underwriting discipline in the face of
competitive market conditions while modestly increasing our gross
written premiums during the quarter," said Richard H. Smith, Chairman, President and Chief
Executive Officer. "We continued to execute our
diversification strategy through the acquisition of Valiant which
provides us with an attractive opportunity to gain admitted
licensing, expand our underwriting resources in select specialty
classes of business and increase our New
York presence. We intend to retain Valiant business
that is consistent with our specialty niche focus and cost
structure," Smith concluded.
Written and Earned Premium
For the three months ended June 30,
2010, gross written premiums were $84.1 million, a 2.0 percent increase from the
gross written premiums during the same period in 2009. For
the six months ended June 30, 2010,
gross written premiums were $167.9
million, a 4.7 percent increase from the gross written
premiums during the same period in 2009.
Net earned premiums during the three months ended June 30, 2010 were $51.5
million, a 0.1 percent increase from the same period of
2009. Net earned premiums during the six months ended
June 30, 2010 were $103.2 million, a 0.8 percent decrease from the
same period of 2009.
There were no gross written or net earned premiums from assumed
retroactive reinsurance transactions during the three months ended
June 30, 2010. There were
$3.3 million of gross written and net
earned premiums from assumed retroactive reinsurance transactions
during the six months ended June 30,
2010.
Commissions and Fees
Commissions and fees during the three months ended June 30, 2010 were $7.9
million, a 18.0 percent decrease from the same period of
2009. Commissions and fees during the six months ended
June 30, 2010 were $15.7 million, a 4.9 percent decrease from the
same period of 2009. The decrease for the three and six
months ended June 30, 2010 compared
to the same periods of 2009 is primarily due to a contingent
commission adjustment of $1.3 million
recorded during the three and six months ended June 30, 2009 related to our insurance services
business.
Investments
Cash and investments were $771.5
million at June 30, 2010.
The Company recorded $6.3
million of pretax net unrealized gains on its available for
sale investment portfolio during the three months ended
June 30, 2010. For the six
months ended June 30, 2010, pretax
net unrealized gains on its available for sale investment portfolio
were $12.1 million. The
investment portfolio's taxable equivalent net total returns for the
three and six months ended June 30,
2010 were 1.9 and 4.4 percent, respectively. The
annualized taxable equivalent yield on total investments (net of
investment expenses) was 5.3 percent at both June 30, 2010 and 2009.
Losses and Loss Adjustment Expenses
During the three and six months ended June 30, 2010, there was no development of prior
years' loss and loss adjustment expense reserves. For the
three and six months ended June 30,
2009, there were $3.6 million
and $4.4 million, respectively, of
favorable development of prior years' loss and loss adjustment
expense reserves.
Underwriting, Agency and Other Expenses
During the three and six months ended June 30, 2010, the Company recorded $1.1 million of acquisition-related transaction
costs in underwriting, agency and other expenses. These
expenses were excluded from the calculation of the Company's GAAP
underwriting expense ratio for the three and six months ended
June 30, 2010.
Capital Management
As of today, the Company has not repurchased any shares under
its Share Repurchase Program, which expires August 20, 2010. The Company paid a cash
dividend of $0.025 per share on
June 30, 2010. This represents
the Company's fifth consecutive quarterly dividend of $0.025 per share. As previously disclosed,
the Company paid a $2.00 per share
special cash dividend on March 31,
2010. This special dividend when combined with our
share repurchases in 2008 and 2009 and our regular dividends
resulted in $56.5 million of capital
returned to shareholders since August of 2008.
Valiant Acquisition
As previously disclosed, on July 1,
2010, the Company announced that it entered into a
definitive agreement whereby its principal insurance subsidiary,
First Mercury Insurance Company, will acquire Valiant, a subsidiary
of Ariel Holdings, Ltd. ("Ariel"), for an amount equal to Valiant's
tangible book value, which is anticipated to be approximately
$55 million at closing. Under
the terms of the agreement, Ariel has agreed to provide First
Mercury with full protection related to Valiant's net loss and loss
adjustment expense reserves and unearned premium reserves reflected
on the closing date balance sheet. The transaction is subject
to customary closing conditions and regulatory approvals and is
anticipated to close in the fourth quarter of 2010.
The components of Valiant's existing underwriting platform to be
retained by First Mercury include primary and excess casualty,
professional and management liability and marine classes of
business. In the twelve months following the closing of the
transaction, First Mercury anticipates that Valiant will write
approximately $50 to $60 million of
gross written premiums and expects Valiant to operate at a net GAAP
underwriting expense ratio that is consistent with the Company's
overall net GAAP underwriting expense ratio. Consistent with
past practice, First Mercury will prudently use reinsurance on
these newer lines of business. If the transaction closes in
the fourth quarter of 2010, the Company anticipates recognizing a
gain from the transaction with a corresponding increase in book
value per share of between $0.56 and
$0.73, based on the shares outstanding as of June 30, 2010, related to the value of Valiant's
insurance company licenses and tax net operating loss
carry-forwards. First Mercury does not expect the transaction
to have a material effect on 2010 earnings and expects the
transaction to be modestly accretive to earnings in 2011.
Other
The Company recorded a pretax restructuring charge during the
first quarter of 2010 of $5.0
million, or 4.9 percentage points of the expense ratio for
the six months ended June 30, 2010.
There was no restructuring charge recorded during the three
months ended June 30, 2010.
Conference Call Details
The Company will host a conference call on August 3, 2010 at 11:00
a.m. Eastern Time to discuss second quarter results.
The call can be accessed live by dialing 877-407-0789 or by
visiting the Company's website at www.firstmercury.com.
Investors may access a replay by dialing 877-870-5176, entering
conference ID# 353967, which will be available through August 10, 2010. The webcast replay will
also be archived in the "Investor Relations" section of the
Company's website.
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.
Non-GAAP Financial Measures
Operating net income and operating net income per share are
non-GAAP financial measures, and management believes that
investors' understanding of core operating performance is enhanced
by First Mercury's disclosure of these financial measures.
Operating net income consists of net income adjusted to
exclude the impact of net realized gains (losses) on investments,
other-than-temporary impairment losses on investments, the change
in fair value of derivative instruments, restructuring charges,
acquisition-related transaction costs, and taxes related to these
adjustments. Definitions of these items may not be comparable
to the definitions used by other companies. Net income and
net income per share are the GAAP financial measures that are most
directly comparable to operating net income and operating net
income per share.
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.
Financial Tables Follow...
First Mercury Financial
Corporation
|
|
Condensed Consolidated
Statements of Income
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
%
|
|
June 30,
|
|
%
|
|
|
2010
|
|
2009
|
|
Change
|
|
2010
|
|
2009
|
|
Change
|
|
(Dollars in thousands, except
share and per share data)
|
|
Operating Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earned premiums
|
$
51,504
|
|
$
51,432
|
|
0.1%
|
|
$
103,177
|
|
$
104,027
|
|
-0.8%
|
|
Commissions and fees
|
7,857
|
|
9,577
|
|
-18.0%
|
|
15,659
|
|
16,471
|
|
-4.9%
|
|
Net investment income
|
8,416
|
|
7,132
|
|
18.0%
|
|
17,085
|
|
13,566
|
|
25.9%
|
|
Net realized gains (losses) on
investments
|
(1,502)
|
|
9,644
|
|
-115.6%
|
|
2,683
|
|
11,437
|
|
76.5%
|
|
Other-than-temporary impairment
losses on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses
|
(332)
|
|
(832)
|
|
-60.1%
|
|
(1,279)
|
|
(869)
|
|
47.2%
|
|
Portion of losses recognized in
accumulated other comprehensive income
|
293
|
|
735
|
|
-60.1%
|
|
735
|
|
735
|
|
0.0%
|
|
Net impairment losses recognized
in earnings
|
(39)
|
|
(97)
|
|
-59.8%
|
|
(544)
|
|
(134)
|
|
306.0%
|
|
Total Operating
Revenues
|
66,236
|
|
77,688
|
|
-14.7%
|
|
138,060
|
|
145,367
|
|
-5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment
expenses, net
|
31,572
|
|
35,463
|
|
-11.0%
|
|
65,584
|
|
65,956
|
|
-0.6%
|
|
Amortization of deferred
acquisition expenses
|
13,611
|
|
13,600
|
|
0.1%
|
|
26,754
|
|
26,930
|
|
-0.7%
|
|
Underwriting, agency and other
expenses
|
12,696
|
|
9,526
|
|
33.3%
|
|
23,857
|
|
18,750
|
|
27.2%
|
|
Amortization of intangible
assets
|
516
|
|
575
|
|
-10.3%
|
|
1,032
|
|
1,149
|
|
-10.2%
|
|
Restructuring
|
-
|
|
-
|
|
-
|
|
5,018
|
|
-
|
|
100.0%
|
|
Total Operating
Expenses
|
58,395
|
|
59,164
|
|
-1.3%
|
|
122,245
|
|
112,785
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
7,841
|
|
18,524
|
|
-57.7%
|
|
15,815
|
|
32,582
|
|
-51.5%
|
|
Interest Expense
|
1,542
|
|
1,417
|
|
8.8%
|
|
2,928
|
|
2,833
|
|
3.4%
|
|
Change in Fair Value of
Derivative Instruments
|
-
|
|
(123)
|
|
100.0%
|
|
-
|
|
(230)
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
6,299
|
|
17,230
|
|
-63.4%
|
|
12,887
|
|
29,979
|
|
-57.0%
|
|
Income Taxes
|
2,154
|
|
5,621
|
|
-61.7%
|
|
3,529
|
|
9,689
|
|
-63.6%
|
|
Net Income
|
$
4,145
|
|
$
11,609
|
|
-64.3%
|
|
$
9,358
|
|
$
20,290
|
|
-53.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.23
|
|
$
0.65
|
|
|
|
$
0.53
|
|
$
1.14
|
|
|
|
Diluted
|
$
0.23
|
|
$
0.64
|
|
|
|
$
0.53
|
|
$
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
17,451,657
|
|
17,700,272
|
|
|
|
17,279,391
|
|
17,737,708
|
|
|
|
Diluted
|
17,465,715
|
|
18,042,484
|
|
|
|
17,412,836
|
|
18,075,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Underwriting
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
61.3%
|
|
69.0%
|
|
-7.7 Pts.
|
|
63.6%
|
|
63.4%
|
|
0.2 Pts.
|
|
Expense ratio
|
35.2%
|
|
30.9%
|
|
4.3 Pts.
|
|
39.2%
|
|
30.6%
|
|
8.6 Pts.
|
|
Combined ratio
|
96.5%
|
|
99.9%
|
|
-3.4 Pts.
|
|
102.8%
|
|
94.0%
|
|
8.8 Pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Mercury Financial
Corporation
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
June 30,
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
ASSETS
|
(Dollars in
thousands,
except share and per share
data)
|
|
|
|
|
|
|
Investments
|
|
|
|
|
Debt securities
|
$
686,705
|
|
$
648,522
|
|
Equity securities and
other
|
38,294
|
|
38,752
|
|
Short-term
|
23,299
|
|
12,216
|
|
Total Investments
|
748,298
|
|
699,490
|
|
Cash and cash
equivalents
|
23,188
|
|
14,275
|
|
Premiums and reinsurance
balances receivable
|
56,133
|
|
78,544
|
|
Accrued investment
income
|
6,581
|
|
6,248
|
|
Accrued profit sharing
commissions
|
14,588
|
|
14,661
|
|
Reinsurance recoverable on paid
and unpaid losses
|
192,646
|
|
172,711
|
|
Prepaid reinsurance
premiums
|
56,931
|
|
57,374
|
|
Deferred acquisition
costs
|
25,461
|
|
25,654
|
|
Intangible assets, net of
accumulated amortization
|
36,072
|
|
37,104
|
|
Goodwill
|
25,483
|
|
25,483
|
|
Other assets
|
25,529
|
|
26,049
|
|
Total Assets
|
$
1,210,910
|
|
$
1,157,593
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Loss and loss adjustment expense
reserves
|
$
527,042
|
|
$
488,444
|
|
Unearned premium
reserves
|
149,271
|
|
146,773
|
|
Long-term debt
|
67,013
|
|
67,013
|
|
Line of credit
|
30,000
|
|
4,000
|
|
Funds held under reinsurance
treaties
|
77,866
|
|
71,661
|
|
Premiums payable to insurance
companies
|
28,523
|
|
31,167
|
|
Reinsurance payable on paid
losses
|
2,499
|
|
958
|
|
Deferred federal income
taxes
|
13,404
|
|
13,844
|
|
Accounts payable, accrued
expenses, and other liabilities
|
17,930
|
|
17,649
|
|
Total Liabilities
|
913,548
|
|
841,509
|
|
Stockholders'
Equity
|
|
|
|
|
Common stock, $0.01 par value;
authorized 100,000,000 shares; issued
|
|
|
|
|
and
outstanding 17,757,859 and
17,181,106 shares
|
178
|
|
172
|
|
Paid-in-capital
|
156,898
|
|
154,417
|
|
Accumulated other comprehensive
income
|
21,845
|
|
16,256
|
|
Retained earnings
|
120,289
|
|
147,087
|
|
Treasury stock; 130,600 and
130,600 shares
|
(1,848)
|
|
(1,848)
|
|
Total Stockholders'
Equity
|
297,362
|
|
316,084
|
|
Total Liabilities and
Stockholders' Equity
|
$
1,210,910
|
|
$
1,157,593
|
|
|
|
|
|
|
Book Value Per
Share
|
$
16.75
|
|
$
18.40
|
|
Tangible Book Value Per
Share
|
$
13.97
|
|
$
15.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Mercury Financial
Corporation
|
|
Summary Financial
Data
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
(Dollars in thousands,
except per share data)
|
|
Gross Written
Premiums:
|
|
|
|
|
|
|
|
|
|
Primary general
liability
|
|
$
53,690
|
|
$
56,153
|
|
$ 102,987
|
|
$ 106,899
|
|
Excess/Umbrella
casualty
|
|
10,949
|
|
8,509
|
|
22,116
|
|
17,155
|
|
Professional
liability
|
|
7,641
|
|
7,338
|
|
17,889
|
|
15,671
|
|
Commercial property
|
|
9,999
|
|
8,778
|
|
16,610
|
|
16,348
|
|
Other
|
|
1,855
|
|
1,743
|
|
8,266
|
|
4,326
|
|
Gross written
premiums
|
|
$
84,134
|
|
$
82,521
|
|
$ 167,868
|
|
$ 160,399
|
|
|
|
|
|
|
|
|
|
|
|
Net Written
Premiums:
|
|
|
|
|
|
|
|
|
|
Primary general
liability
|
|
$
36,564
|
|
$
38,309
|
|
$ 70,988
|
|
$ 72,647
|
|
Excess/Umbrella
casualty
|
|
2,154
|
|
906
|
|
3,973
|
|
1,914
|
|
Professional
liability
|
|
4,549
|
|
5,610
|
|
10,636
|
|
12,030
|
|
Commercial property
|
|
8,381
|
|
6,874
|
|
12,222
|
|
12,350
|
|
Other
|
|
1,855
|
|
1,743
|
|
8,266
|
|
4,326
|
|
Net written premiums
|
|
$
53,503
|
|
$
53,442
|
|
$ 106,085
|
|
$ 103,267
|
|
|
|
|
|
|
|
|
|
|
|
Commissions and
Fees:
|
|
|
|
|
|
|
|
|
|
Insurance underwriting
commissions and fees
|
|
$
1,320
|
|
$
1,360
|
|
$
2,789
|
|
$ 2,717
|
|
Insurance services commissions
and fees
|
|
6,537
|
|
8,217
|
|
12,870
|
|
13,754
|
|
Total commissions and
fees
|
|
$
7,857
|
|
$
9,577
|
|
$ 15,659
|
|
$ 16,471
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents:
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
$
1,109
|
|
$
32,428
|
|
$ 54,230
|
|
$ 58,125
|
|
Net cash provided by (used in)
investing activities
|
|
7,056
|
|
(17,111)
|
|
(36,264)
|
|
(60,056)
|
|
Net cash used in financing
activities
|
|
(444)
|
|
(6,328)
|
|
(9,053)
|
|
(6,328)
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
$
7,721
|
|
$
8,989
|
|
$
8,913
|
|
$
(8,259)
|
|
|
|
|
|
|
|
|
|
|
|
Return on Equity:
(1)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
5.6%
|
|
16.5%
|
|
6.2%
|
|
14.8%
|
|
Operating net
income
|
|
8.4%
|
|
7.6%
|
|
8.1%
|
|
9.3%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income:
(3)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
4,145
|
|
$
11,609
|
|
$
9,358
|
|
$ 20,290
|
|
Adjust for Net realized (gains)
and losses on
|
|
|
|
|
|
|
|
|
|
investments, net of
tax
|
|
976
|
|
(6,269)
|
|
(1,744)
|
|
(7,434)
|
|
Adjust for Other-than-temporary
impairment losses
|
|
|
|
|
|
|
|
|
|
on investments, net
of tax
|
|
25
|
|
63
|
|
354
|
|
87
|
|
Adjust for Change in fair value
of derivative
|
|
|
|
|
|
|
|
|
|
instruments, net of
tax
|
|
-
|
|
(80)
|
|
-
|
|
(150)
|
|
Adjust for Restructuring, net of
tax
|
|
-
|
|
-
|
|
3,262
|
|
-
|
|
Adjust for Acquisition-related
transaction costs, net of tax
|
|
1,033
|
|
-
|
|
1,033
|
|
-
|
|
Operating net income
|
|
$
6,179
|
|
$
5,323
|
|
$ 12,263
|
|
$ 12,793
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income Per Share:
(3)
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
0.35
|
|
$
0.30
|
|
$
0.69
|
|
$
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
Tangible Stockholders' Equity:
(2)
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
297,362
|
|
$
316,084
|
|
|
|
|
|
Intangible assets,
net
|
|
(36,072)
|
|
(37,104)
|
|
|
|
|
|
Deferred tax liability -
intangible assets, net
|
|
12,251
|
|
12,613
|
|
|
|
|
|
Goodwill
|
|
(25,483)
|
|
(25,483)
|
|
|
|
|
|
Tangible stockholders'
equity
|
|
$
248,058
|
|
$
266,110
|
|
|
|
|
|
(1) Return on
equity represents net income and operating net income expressed on
an annualized basis as a percentage of average stockholders'
equity.
|
|
(2) Tangible
stockholders' equity is total stockholders' equity excluding the
value of intangible assets, net of accumulated
amortization,
goodwill, and the deferred tax
liability related to intangible assets.
|
|
(3) See
discussion of use of non-GAAP financial measures above. $0.9
million of the $1.1 million of acquisition-related
transaction
costs were not deemed deductible
for tax purposes. A tax rate of 35 percent was used for those
acquisition-related transaction
costs that were tax
deductible.
|
|
|
|
|
|
|
|
|
|
|
SOURCE First Mercury Financial Corporation
Copyright g. 2 PR Newswire