American Bankers Insurance Group Inc. announces agreement to purchase Consolidated International Group Inc. credit insurance business.MIAMI--(BUSINESS WIRE)--July 5, 1995--American Bankers Insurance Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ABIG ABIG American Bankers Insurance Group ABIG Access Bus Industry Group ) announced Wednesday that it recently executed agreements to purchase approximately 90% of Consolidated International Group Inc.'s (CIG CIG Ceiling (height above ground level to base of clouds) CIG Conference Intergouvernementale (French: Intergovermental Conference) CIG Conservation Innovation Grants (USDA NRCS) ) credit insurance business. The consummation of this transaction is subject to certain regulatory approvals. American Bankers will be assuming the rights and obligations of certain blocks of credit insurance business originally issued by all current and two former subsidiaries or affiliates of CIG and replace these companies with respect to issuing and servicing business in force and written prospectively. American Bankers will receive proceeds from CIG equal to the unearned premium reserves, loss reserves and other identified liabilities net of the agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy purchase price. The credit insurance business being assumed consist of four of our primary products lines; credit life, credit disability, credit property and involuntary unemployment insurance sold through CIG's financial and retail institution clients. The acquisition results in the assumption of an existing block of unearned premiums totalling $61 million and is expected to produce approximately $55 million annually in new premiums. The full positive impact on earnings from this transaction will be reflected beginning in the third quarter. R. Kirk Landon, American Bankers' chairman and chief executive officer said: "The credit business assumed from CIG will continue to strengthen our already strong client base in the U.S., Canada and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. . American Bankers remains focused on being a niche marketer and we are delighted to welcome CIG's clients who will further expand and enhance our distribution channels." American Bankers Insurance Group Inc. is one of the leading providers of credit-related insurance programs in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada and the Caribbean. The company also conducts business in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the United Kingdom. ABIG, as an international specialty wholesaler and marketer of insurance products, services and programs, concentrates on marketing through financial institutions, retailers, and other entities which provide consumer and mortgage financing as a regular part of their business. The company markets an affordable product to a segment of the population that is underserved by the insurance industry. CONTACT: American Bankers Insurance Group Inc., Miami P. Bruce Camacho, First Senior Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 305/252-7060 |
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