American Financial Group to Acquire ABA Insurance Services
American Financial Group announced today 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 market-leading 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.
“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.” – Co-CEO of American Financial Group, Carl H. Lindner III.
“We are excited to join Great American Insurance Group. Our talented team of underwriting, claims and customer service professionals is a stable source of insurance for banks, small businesses and nonprofit organizations. We will continue to be endorsed by the American Bankers Association and 31 state bankers associations and maintain our relationship with ABMI.” -President and CEO, ABAIS, John N. Wells.