American Financial Group has agreed to acquire ABA Insurance Services from American Bankers Mutual Insurance Ltd. in a $28 million cash deal.

Based in Shaker Heights, Ohio, ABAIS is a provider of D&O and other complementary insurance cover for banks, small businesses and nonprofit organizations, with a history that dates back thirty years.

American Financial Group said that the acquisition will help strengthen Great American’s leadership position in targeted Specialty Casualty classes of business. AFG is an insurance holding company, based in Cincinnati, Ohio, with assets over $60 billion. Through the operations of Great American Insurance Group, it focuses on property/casualty insurance, particularly 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.

AFG said the acquisition should contribute approximately $50 million in net written premiums annually. 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 34^th specialty property and casualty (P&C) business unit.

Carl H. Lindner III, Co-CEO of American Financial Group commented, said in prepared remarks that the ABAIS acquisition adds a company to its portfolio with “a long track record of underwriting success and profitability.”

John N. Wells, President and CEO, ABAIS stated said in prepared remarks that the company “will continue to be endorsed by the American Bankers Association and 31 state bankers associations.” It will also continue its relationship with ABMI.

Source: American Financial Group