Mercer Insurance Group Reports Earnings For the Nine Months & Quarter Ended Sep 30, 2009

Pennington, New Jersey, October 28, 2009 - Mercer Insurance Group, Inc. (Nasdaq: MIGP) reported today its operating results for the nine months and quarter ended September 30, 2009.

3rd Quarter highlights:

• Net income of $0.56 per diluted share versus $0.28 per diluted share in the prior year's quarter,

• Operating income of $0.51 per diluted share, which was the same as the prior year's quarter,

• A GAAP combined ratio of 98.2% versus 97.9% in the prior year's quarter,

• Book value per share of $25.49.

Andrew R. Speaker, President and CEO commented "We are happy to have generated an operating profit that is consistent with third quarter earnings in past years. In an environment in which we are challenged by both a slow economy and continued competitive insurance pricing, it is pleasing to see that our disciplined underwriting has lead to profitable operations."

Speaker noted "We are also delighted that our strategy of maintaining a prudent investment portfolio while also seeking a fair return has continued to protect and enhance our capital position. Our conservatively positioned portfolio, along with our disciplined underwriting performance, has helped increase book value per share to its highest ever level."

"We expect the challenging conditions from the economy and competitive pricing to persist. We will maintain our underwriting and investment discipline, continue to exercise careful expense management and work on building out the new products we've introduced in the past few years. This focus should help us to continue to generate operating profits while protecting our shareholders' capital."