AMERICAN FINANCIAL CORPORATION AND GREAT AMERICAN INSURANCE COMPANY ANNOUNCE SALE OF AMERICAN BUSINESS INSURANCE, INC.
CINCINNATI, Aug. 26 /PRNewswire/ -- American Financial Corporation ("AFC") announced today that its wholly-owned subsidiary, Great American Insurance Company, has signed a definitive agreement to sell its insurance brokerage operation, American Business Insurance, Inc. and most of that company's subsidiaries ("ABI"), to Acordia, Inc. (NYSE: ACO), an Indianapolis-based insurance broker. The transaction is expected to close in October of this year. Great American will receive approximately $50 million cash plus Acordia common stock and warrants to purchase additional Acordia common stock. Approximately $50 million of debt and certain other liabilities will remain the obligations of ABI. ABI has been a subsidiary of Great American since 1984. Two ABI subsidiaries are excluded from the sale -- Chicago-based ABI Special Risk, Inc., which provides property-casualty insurance services for non- profit organizations and the Talbot Agency operations, headquartered in Albuquerque, New Mexico. In announcing the definitive agreement, Carl H. Lindner III, President of Great American said: "The sale of ABI will allow Great American and AFC to further their strategy of focusing core business operations and capital in the risk-bearing side of the insurance business, as contrasted with acting as an intermediary in the placement of insurance." Great American, founded in 1872, provides commercial, specialty and personal insurance products throughout the United States. It is the lead insurer in the 42nd largest U.S. property-casualty insurance group, based on 1992 net written premiums. Both Great American and its parent, AFC, are based in Cincinnati. AFC is a holding company engaged in property and casualty insurance, annuity programs and portfolio investing. AFC also owns a significant portion of the voting equity securities of several publicly owned companies. -0- 8/26/93 /CONTACT: Sandra W. Heimann for American Financial Corporation, 513-579-2121/ (ACO)
CO: American Financial Corp; American Business Insurance; Acordia, Inc. ST: Ohio, Indiana IN: INS SU: TNM
BM -- CL005 -- 5983 08/26/93 07:46 EDT
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|Date:||Aug 26, 1993|
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