American Financial Group, Inc. Enters Into Agreement to Acquire Summit Holdings Southeast, Inc.
09 1월 2014 - 11:15PM
Business Wire
- AFG to add specialist workers’
compensation carrier with leading market share in the Southeastern
U.S.
- Additional $1.0 billion of cash to
invest leverages AFG’s superior investing talent
- Expected to generate double digit
returns; immediately accretive to AFG’s 2014 earnings
American Financial Group, Inc. (NYSE/NASDAQ: AFG) today
announced that it has reached a definitive agreement to acquire
Summit Holdings Southeast, Inc. and its related companies
(together, “Summit”), from Liberty Mutual Insurance in an all-cash
transaction. Based in Lakeland, FL, Summit is a leading provider of
workers’ compensation solutions in the Southeastern United States,
with approximately $520 million of premium written. Following the
transaction, Summit will continue to operate under the Summit brand
as a member of AFG’s Great American Insurance Group.
Under the terms of the transaction, AFG will pay Liberty Mutual
Insurance an estimated $250 million at closing. The purchase price
will be subject to adjustment between signing and closing for,
among other things, changes in Summit’s GAAP tangible book value.
AFG’s total capital investment in Summit will be approximately $400
million, inclusive of a capital contribution by AFG at closing. The
transaction is expected to close in the first or second quarter of
2014, following customary regulatory approvals. AFG will not use
any external financing in the acquisition.
Carl H. Lindner III, Co-Chief Executive Officer of AFG,
commented, “Summit has an excellent long-term track record of
underwriting outperformance. We value its underwriting discipline,
talented management team and value-based service model. Their
business model fits well with our P&C Group’s strategic focus
and complements our Great American Insurance Group specialty
workers’ compensation offerings available through our other
specialty P&C businesses. We look forward to welcoming Carol
Sipe, Summit Group’s President and CEO, and her team to the AFG
family.”
Conference Call and Webcast Information
AFG will discuss the broad details and benefits of the
transaction during a conference call scheduled for Thursday,
January 9, 2014 at 11:30 am (ET). Interested investors may dial
toll-free 877-459-8719 (international dial-in 424-276-6843) using
conference ID 31458708. Please dial in five to ten minutes prior to
the scheduled start time of the call. A replay will be available
two hours following the completion of the call and will remain
available until 11:59 pm (ET) on January 16, 2014. To listen to the
replay, dial 1-855-859-2056 (international dial-in 404-537-3406)
and provide the conference ID 31458708.
The conference call and accompanying webcast slides will also be
broadcast live over the Internet. To listen to the call, go to the
Investor Relations page on AFG’s website, www.AFGinc.com, and
follow the instructions at the Webcasts and Presentations
link. The archived webcast will be available immediately after the
call via the same link on the Investor Relations page until January
16, 2014 at 11:59 pm (ET). An archived audio MP3 file will be
available within 24 hours of the call.
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based
in Cincinnati, Ohio with assets of approximately $40 billion.
Through the operations of Great American Insurance Group, AFG is
engaged primarily in property and casualty insurance, focusing on
specialized commercial products for businesses, and in the sale of
fixed and fixed-indexed annuities in the retail, financial
institutions and education markets. Great American Insurance
Group’s roots go back to 1872 with the founding of its flagship
company, Great American Insurance Company.
Forward Looking Statements
This press release contains certain statements that may be
deemed to be “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements in this press
release not dealing with historical results are forward-looking and
are based on estimates, assumptions and projections. Examples of
such forward-looking statements include statements relating to: the
Company’s expectations concerning market and other conditions and
their effect on future premiums, revenues, earnings and investment
activities; recoverability of asset values; expected losses and the
adequacy of reserves for long-term care, asbestos, environmental
pollution and mass tort claims; rate changes; and improved loss
experience.
Actual results and/or financial condition could differ
materially from those contained in or implied by such
forward-looking statements for a variety of reasons including but
not limited to: changes in financial, political and economic
conditions, including changes in interest and inflation rates,
currency fluctuations and extended economic recessions or
expansions in the U.S. and/or abroad; performance of securities
markets; AFG’s ability to estimate accurately the likelihood,
magnitude and timing of any losses in connection with investments
in the non-agency residential mortgage market; new legislation or
declines in credit quality or credit ratings that could have a
material impact on the valuation of securities in AFG’s investment
portfolio; the availability of capital; regulatory actions
(including changes in statutory accounting rules); changes in the
legal environment affecting AFG or its customers; tax law and
accounting changes; levels of natural catastrophes and severe
weather, terrorist activities (including any nuclear, biological,
chemical or radiological events), incidents of war or losses
resulting from civil unrest and other major losses; development of
insurance loss reserves and establishment of other reserves,
particularly with respect to amounts associated with asbestos and
environmental claims and AFG’s run-off long-term care business;
availability of reinsurance and ability of reinsurers to pay their
obligations; the unpredictability of possible future litigation if
certain settlements of current litigation do not become effective;
trends in persistency, mortality and morbidity; competitive
pressures, including those in the annuity distribution channels,
the ability to obtain adequate rates and policy terms; changes in
AFG’s credit ratings or the financial strength ratings assigned by
major ratings agencies to our operating subsidiaries; and other
factors identified in our filings with the Securities and Exchange
Commission.
The forward-looking statements herein are made only as of the
date of this press release. The Company assumes no obligation to
publicly update any forward-looking statements.
American Financial Group, Inc.Diane P. Weidner, Asst. Vice
President - Investor Relations, 513-369-5713Websites:www.AFGinc.comwww.GreatAmericanInsuranceGroup.com
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