American Bankers Insurance Group Acquires MS Diversified Corporation.

MIAMI--(BUSINESS WIRE)--Oct. 29, 1998--American Bankers Insurance Group, Inc. (NYSE:ABI) today announced that it has completed its acquisition of MS Diversified Corporation and its subsidiaries (MSD). The merger agreement for this acquisition was signed on May 18, 1998. ABI paid approximately $54.6 million in cash for MSD.

MSD is an insurance group with a strong regional presence and will provide ABI with access to the extended vehicle service contract market. MSD, headquartered in Jackson, Mississippi, is primarily a seller and servicer of extended vehicle service contracts, consumer financing, credit and casualty insurance and other financial services to automobile dealers and financial institutions. MSD operates principally through a network of approximately 350 automobile dealers in eight southeastern states and through financial institutions in Mississippi and Louisiana.

ABI concentrates on marketing affordable, specialty insurance products and services through financial institutions, retailers and other entities offering consumer financing as a regular part of their business. ABI, through its insurance subsidiaries, operates in the United States, Canada, the Caribbean, Latin America and the United Kingdom.