American Financial to purchase Crop Risk Services from AIG

American Financial Group (AFG) and American International Group (AIG) announced they have entered into a definitive agreement whereby AFG will purchase Crop Risk Services from AIG. CRS is a primary crop insurance general agent based in Decatur, Illinois, with 2022 gross written premiums of approximately $1.2B and is the seventh largest provider of multi-peril crop insurance in the United States, based on 2022 premiums. Under the terms of the transaction, AFG will pay AIG $240M in cash at closing, subject to certain closing adjustments. AFG expects to use cash on hand to fund the acquisition and the parties anticipate the closing to take place during the third quarter of 2023, subject to obtaining required regulatory approvals and the satisfaction of other customary closing conditions. Carl H. Lindner III, Co-Chief Executive Officer of AFG, commented, "We are very pleased to welcome CRS and its approximately 450 employees to AFG’s Great American Insurance Group. This business is a great strategic fit with our existing crop insurance operations and will provide the opportunity to continue to benefit from economies of scale. Following the transaction, Great American will remain the #5 ranked writer of U.S. crop insurance and the largest U.S.-owned participant in the United States multi-peril crop insurance program."