Later in March, American Financial Group (NYSE: AFG) announced plans to acquire part of property and casualty insurer National Interstate Corporation (NASDAQ: NATL) for US$293 million in cash. The insurer will acquire only those shares that are now owned by Great American Insurance Company, the wholly owned subsidiary of the acquirer. Great American currently holds a 51% stake in National Interstate.
With high levels of deal activity surrounding the Asia-Pacific particularly, foreign companies, especially those from Japan, are also seeking to diversify into bigger targets in the US. Insurance assets in the US are important add-ons to their portfolios and are buying business-building platforms to enable their future growth and expansion. Growth in cross-regional M&A activity was also driven by dim prospects at home and motivated by Japan’s big four insurers — Dai-ichi Life (TSE: 8750), Meiji Yasuda Life, Nippon Life and Sumitomo Life — insurers spent about US$18.4 billion worth of deals in 2015. #MergentInc #industryreports #insurance