American Financial Group in Cincinnati has agreed to buy ABA Insurance Services in Shaker Heights, Ohio.
American Financial is buying the business from American Bankers Mutual Insurance, a bank-owned mutual insurance company that reinsures policies written for a program endorsed by the American Bankers Association. The deal is expected to close in the fourth quarter.
American Financial did not disclose the price it will pay.
ABA Insurance Services provides D&O insurance and other services to banks. The business, which will continue to operate under its current brand, also offers insurance to small businesses and nonprofits.
The business “will continue to provide innovative policies that address the ever-changing needs of our members in today’s complex risk management environment,” Rob Nichols, the ABA's president and CEO, said in the release. “We’re pleased that our member banks will continue to have access to high-quality and reliable insurance they can depend on.”
The deal will allow ABA Insurance Services to offer more products and services to banks, said Jeff Plagge, chairman of American Bankers Mutual Insurance's board and CEO of Northwest Financial in Arnolds Park, Iowa.
ABA member banks insured through ABA Insurance Services will remain eligible to receive distributions from American Bankers Mutual Insurance as they are declared. ABA Insurance Services will also continue to be endorsed by the ABA and 31 state bankers associations.
Marsh, Berry & Co. advised ABA Insurance Services.
