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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 VtZqfuSDmAaVw/Sz7El4hytjmKnLS+h4enL3AJ1HvffB9zwTpEkw6Jnhfyk5TlT6
 CBxeUpmEpawEpEl8qu7/XQ==

<SEC-DOCUMENT>0001179110-04-013246.txt : 20040618
<SEC-HEADER>0001179110-04-013246.hdr.sgml : 20040618
<ACCEPTANCE-DATETIME>20040618144003
ACCESSION NUMBER:		0001179110-04-013246
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040616
FILED AS OF DATE:		20040618

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MERCER INSURANCE GROUP INC
		CENTRAL INDEX KEY:			0001050690
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				232939601
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		10 NORTH HIGHWAY ONE
		CITY:			PENNINGTON
		STATE:			NJ
		ZIP:			08534
		BUSINESS PHONE:		6097370426

	MAIL ADDRESS:	
		STREET 1:		10 N HWY 1
		CITY:			PENNINGTON
		STATE:			NJ
		ZIP:			08534

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MALIZIA SAMUEL J
		CENTRAL INDEX KEY:			0001139143

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25425
		FILM NUMBER:		04870611

	BUSINESS ADDRESS:	
		STREET 1:		639 KENNARD RD
		CITY:			STATE COLLEGE
		STATE:			PA
		ZIP:			16801
		BUSINESS PHONE:		8144666625

	MAIL ADDRESS:	
		STREET 1:		639 KENNARD RD
		CITY:			STATE COLLEGE
		STATE:			PA
		ZIP:			16801
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-06-16</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001050690</issuerCik>
        <issuerName>MERCER INSURANCE GROUP INC</issuerName>
        <issuerTradingSymbol>MIGP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001139143</rptOwnerCik>
            <rptOwnerName>MALIZIA SAMUEL J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>10 NORTH HIGHWAY 31</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>PENNINGTON</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>08534</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Restricted Stock Award</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>12.21</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-06-16</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>9375</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>12.21</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2009-06-16</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>9375</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>9375</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>12.21</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-06-16</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>27400</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>12.21</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2007-06-16</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>27400</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>36775</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The award vests over a five year period.</footnote>
        <footnote id="F2">The option vests in three annual installments beginning on June 16, 2004.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Andrew R. Speaker, by Power of Attorney</signatureName>
        <signatureDate>2004-06-18</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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