ACE Limited is buying Penn Millers Holding Corp. for $107 million in cash, adding a specialty niche that will complement its existing agricultural capabilities.

Penn Millers Holding Corp., parent company of Penn Millers Insurance Co., reported a net income of $1.4 million for the third quarter.

The Wilkes Barre, Pa., parent company of Penn Millers Insurance Co. plans to repurchase up to 5% of its issued and outstanding shares of common stock.