The American Bankers Association announced yesterday that American Bankers Mutual Insurance Limited—the reinsurer for ABA’s endorsed insurance program—has reached an agreement to sell ABA Insurance Services to American Financial Group. (ABA endorses ABAIS for directors and officers liability coverage and other complementary insurance solutions for banks.) The transaction is expected to close in the fourth quarter.
Following the sale, ABAIS will continue to operate under the ABAIS brand and will become a member of AFG’s Great American Insurance Group. ABA member banks insured through ABAIS will remain eligible to receive distributions from ABMI as they are declared. In addition, ABAIS will continue to be endorsed by ABA and 31 state bankers associations.
“This transaction will allow ABAIS to offer even more products and services to banks across the country, while providing insureds with the same great experience they have come to expect from ABAIS’ talented team of underwriting, claims and customer service professionals,” said Jeff Plagge, chairman of the ABMI board of directors and CEO of Northwest Financial Corp. in Arnolds Park, Iowa. “ABMI will continue to serve the banking industry as the primary reinsurer of the ABAIS program, keeping the company involved in this great program in a meaningful way as it has been for over 30 years.”