Fremont Michigan InsuraCorp Applauds Passage of Law to Protect Michigan Insurers
FREMONT, Mich., May 4 /PRNewswire-FirstCall/ -- Fremont Michigan InsuraCorp, Inc. (OTC Bulletin Board: FMMH), a Michigan-exclusive property and casualty insurance holding company, applauded the signing into law Public Act 61 of 2010 by Governor Jennifer Granholm. The law requires the approval of 66.67% of the outstanding voting securities for any merger or acquisition of control which is not supported by a majority of the insurer's Board of Directors. This law, which applies to Michigan-domiciled property and casualty insurers employing fewer than 200 people, provides an added layer of protection against unsolicited or "hostile" takeovers.
"We support this new law and appreciate the hard work of legislators and the governor to make this bipartisan effort a reality," said Richard E. Dunning, Fremont Insurance President and CEO. "This is an important measure for the preservation of Michigan jobs and to restore some of the protections to Michigan corporations which were lost with the repeal of the Michigan Control Share Act in 2009. This is especially important to our shareholder base which is concentrated within the state. This is a common sense approach to defending Michigan companies and jobs from unsolicited takeovers that may not be in the best interests of shareholders, employees, agents and policyholders."
The law is in effect until May 1, 2012 and is applicable in cases where proposed takeovers of Michigan-domiciled insurers are not approved by a majority of the target company's Board of Directors. The law has no impact and places no limitations on mergers that are approved by the target company's Board. The law was introduced as Senate Bill 1174 by State Senator Gerald Van Woerkom (R – Norton Shores) and was supported by Rep. Mary Valentine (D – Norton Shores) and Rep. Goeff Hansen (R – Hart). The new law received widespread support from groups throughout the state, including the Michigan Retailers Association, the Insurance Institute of Michigan, the Michigan Association of Health Plans, the Michigan Boating Industries Association, the Michigan Lake to Lake Bed & Breakfast Association and a variety of insurance companies and independent agencies in Michigan.
Dunning concluded: "While this new law will allow Fremont some protection against unsolicited takeover attempts and those clearly not in the best interests of shareholders, we realize the best protection lies in continued strong returns for our shareholders driven by stellar financial performance. With that in mind, we are focused on executing our long-term strategic plan to ensure Fremont remains a safe, financially stable and growing Michigan company for the benefit of our shareholders, employees, policy holders and independent agents."
About Fremont Michigan InsuraCorp, Inc.
Fremont Michigan InsuraCorp, Inc. is the holding company for Fremont Insurance Company, headquartered in Fremont, Michigan. The company provides property and casualty insurance to individuals, farms and small businesses exclusively in Michigan. Fremont Michigan InsuraCorp's common stock trades on the OTC Bulletin Board under the symbol "FMMH."
SOURCE Fremont Michigan InsuraCorp, Inc.
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