American Financial Group to acquire ABA Insurance Services
This acquisition will further strengthen Great American’s leadership position in targeted specialty casualty classes of business.
American Financial Group, Inc. 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 30 years.
Specialty casualty business
This acquisition will further strengthen Great American’s leadership position in targeted specialty casualty classes of business, according to a statement from American Financial.
“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,” according to Carl H. Lindner III, Co-CEO of American Financial Group. “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.”
$28 million in cash
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 & casualty business unit.
More about American Financial Group
American Financial Group (AFG) is an insurance holding company, based in Cincinnati, Ohio with assets over $60 billion. Through the operations of Great American Insurance Group, AFG is engaged primarily in property & casualty insurance, focusing on specialized commercial products for businesses, and in the sale of fixed, fixed-indexed and variable-indexed annuities in the retail, broker dealer, financial institutions and registered investment advisor markets.
Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
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