American Financial Group Inc. (AFG) will acquire Summit Holdings Southeast Inc. and its related companies from Liberty Mutual Insurance in an all-cash transaction. Summit is a provider of workers’ compensation solutions in the Southeast, with about $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.
AFG said it will pay Liberty Mutual Insurance an estimated $250 million at closing, subject to adjustment between signing and closing for changes in Summit’s GAAP tangible book value. AFG’s total capital investment in Summit will be about $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.
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