Cincinnati, OH -(BusinessWire)- American Financial Group, Inc. (NYSE/NASDAQ: AFG) recently announced that it completed the purchase of Summit Holding Southeast, Inc. and its related companies from Liberty Mutual Insurance in an all-cash transaction. AFG paid Liberty Mutual Insurance approximately $260 million at closing. In addition, AFG made a capital contribution of approximately $140 million, bringing its capital investment in Summit to approximately $400 million. AFG did not use any external financing in the acquisition. Summit’s results of operations will be included in AFG’s consolidated results for nine months of 2014, commencing with the beginning of the second quarter.
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. Summit will continue to operate under the Summit brand as a member of AFG’s Great American Insurance Group.
Carl H. Lindner III, Co-Chief Executive Officer of AFG, commented, “We are pleased to welcome Carol Sipe, Summit’s President, and her team to the AFG family. Summit’s operating culture, specialty focus, and regional market leadership make it a compelling addition to our portfolio of Specialty P&C businesses.”