First Mercury Financial Corporation Announces Share Repurchase Program to Acquire Up to 1.5 Million Shares

    SOUTHFIELD, Mich., Aug. 18 /EMWNews/ -- First Mercury

Financial Corporation (NYSE: FMR) ("First Mercury" or the "Company")

announced today that its Board of Directors has approved a share repurchase

program to acquire up to 1.5 million shares of its outstanding common

stock.



    Purchases under the program may be made at the Company's discretion,

subject to market conditions, in the open market, in privately-negotiated

transactions or otherwise, including potentially pursuant to a 10b5-1 plan.

Any purchases will be made in accordance with the applicable regulations of

the U.S. Securities and Exchange Commission. The share repurchase program

has a term of one year and may be modified or discontinued at any time.



    "The Board's approval of the share repurchase program reflects its

confidence in the Company's business and its ongoing commitment to increase

shareholder value," said Richard H. Smith, Chairman, President and CEO of

First Mercury. "At the same time, the Company will maintain adequate

capital to pursue strategic opportunities and to support growth from

existing specialty underwriting platforms for the foreseeable future," Mr.

Smith added.

    About First Mercury Financial Corporation



    First Mercury Financial Corporation markets and underwrites specialty

commercial insurance products, focusing on niche and underserved segments

where the Company has underwriting expertise and other competitive

advantages. During the Company's 35 years of underwriting risks, First

Mercury has established CoverX(R) as a recognized brand among insurance

agents and brokers. As primarily an excess and surplus (E&S) lines

underwriter, First Mercury has developed the underwriting expertise and

cost-efficient infrastructure which has enabled it to effectively

underwrite such risks.



    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: 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 inability to obtain reinsurance coverage at reasonable

prices; the failure of any loss limitations or exclusions or changes in

claims or coverage; 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; 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.



    For more information on the Company, please visit the Company's website

at http://www.firstmercury.com