American Financial Group has entered into a definitive agreement to become the majority shareholder in Marketform Group, a Lloyd's insurer that focuses on specialty property and casualty insurance products, for approximately $75 million.
As a result of the agreement, American Financial Group (AFG) will effectively own approximately 67% of Marketform and Marketform’s management and staff will own the remaining one-third interest. AFG has also provided a $46 million letter of credit as a corporate member of Lloyd’s Syndicate 2468, which is managed by Marketform. As a result of this action and the Marketform acquisition, AFG will be providing approximately 51% of the capital to Syndicate 2468. This acquisition is expected to close in the early part of 2008.
Holly Bellingham, chairman of Marketform, said: We are very excited to enter into this new relationship with AFG and look forward to working with the Great American Insurance team. The new investment from AFG gives us a solid financial platform that will help take the company to the next level of development, providing us with new opportunities, new lines of business to underwrite and ultimately further profitable growth.