RENO, Nev., Aug. 29 /PRNewswire-FirstCall/ -- Employers Holdings, Inc. ('EMPLOYERS') (NYSE: EIG) announced today that it has entered into an amendment to its merger agreement with AmCOMP Incorporated ('AmCOMP') (Nasdaq: AMCP) providing for the pending acquisition of AmCOMP by EMPLOYERS. Under the amended merger agreement, which has been approved by the boards of directors of both companies, holders of AmCOMP's approximately 15 million common shares outstanding will receive consideration of $12.15 per share in cash. In connection with the amendment to the merger agreement, AmCOMP settled outstanding excessive profits matters with the Florida Office of Insurance Regulation (the 'Florida OIR') through entry into a consent order providing that AmCOMP's insurance subsidiaries realized Florida excessive profits in the amount of approximately $2.8 million for accident years 2003, 2004 and 2005 and Florida excessive profits in the amount of approximately $5.6 million for accident years 2004, 2005 and 2006. In accordance with the terms of the consent order and applicable Florida law, AmCOMP intends to provide refunds to affected policyholders.

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EMPLOYERS also announced that the Florida OIR has approved EMPLOYERS' acquisition of AmCOMP pursuant to the terms of the amended merger agreement. The transaction, which is subject to approval of AmCOMP's stockholders and other customary closing conditions, is now expected to be completed on October 31, 2008. EMPLOYERS expects to finance the purchase price through a combination of cash and debt.

Douglas D. Dirks, President and Chief Executive Officer of Employers Holdings, Inc., said, 'We are very pleased that the issues associated with the AmCOMP excessive profit filings have been resolved and that the Florida OIR has approved our Form A Application. Now, all parties can proceed with the actions necessary to complete this transaction.'

Employers Holdings, Inc. is a holding company with subsidiaries that are specialty providers of workers' compensation insurance and services focused on select, small businesses engaged in low-to-medium hazard industries. The company, through its subsidiaries, operates in 12 states from 11 office locations. The company's insurance subsidiaries, Employers Insurance Company of Nevada and Employers Compensation Insurance Company are rated A- (Excellent) by the A.M. Best Company.