American Financial Group, Inc. Enters Into Agreement to Acquire ABA Insurance Services
CINCINNATI — American Financial Group, Inc. (NYSE: AFG) announced that it has reached a definitive agreement to acquire ABA Insurance Services Inc. (ABAIS) from American Bankers Mutual Insurance, Ltd. (ABMI). Based in Shaker Heights, Ohio, ABAIS is a provider of D&O and other complementary insurance solutions for banks, small businesses and nonprofit organizations, with a history that dates back thirty years. This acquisition will further strengthen Great American’s leadership position in targeted Specialty Casualty classes of business.
Under the terms of the agreement, AFG will pay ABMI approximately $28 million in cash at closing. This business is expected to contribute approximately $50 million in net written premiums on an annual basis. The transaction is expected to close in the fourth quarter, following customary regulatory approvals.
Following the transaction, ABAIS will continue to operate under the ABAIS brand and will become Great American Insurance Group’s 34th specialty property and casualty (P&C) business unit.
Carl H. Lindner III, Co-CEO of American Financial Group commented, “With the acquisition of ABAIS, we will expand our ability to offer specialty P&C insurance offerings through the long-standing leadership of ABAIS in the banking industry and their focus on commercial coverages for small businesses and nonprofits. ABAIS has a long track record of underwriting success and profitability. We are pleased with this addition to our portfolio of diversified, specialty P&C businesses.”