AFG Becomes Major Shareholder In Marketform

by Stewart Douglas

Story link: AFG Becomes Major Shareholder In Marketform

Holdings group American Financial Group has today announced it has purchased a majority holding in Lloyd’s insurer Marketform by virtue of a binding agreement to acquire at a price of $75 million overall, in a move designed to consolidate AFG’s holding within the London market.

The terms of the agreement are dependent on final valuations and balance sheet results, yet either way AFG will become the major shareholder with over 67% of ordinary capital, with the final third of the share resting with the management of Marketform to ensure diversity of strategic direction and input.

As a result of previous investments in Lloyd’s Syndicate 2468 which is currently run by Marketform AFG’s reach into the Synidcate 2468 fund will be upped to over 50% of all capital reserves, giving it a significant foothold in the Lloyd’s market upon which to continue its investment strategy.

Whilst the deal does still require approval from the authorities and finalisation of terms based on balance sheet returns, it is thought that the new gross written premiums figure for AFG will increase to almost $150 million over the course of 2008.

Marketform were today said to be delighted with the move, suggesting that they are more than prepared to work closely with the staff of AFG with a view to improving performance and increasing gross written premiums over the course of the year.

“The new investment from AFG gives us a solid financial platform that will help take the company to the next level of development, providing us with new opportunities, new lines of business to underwrite and ultimately further profitable growth.”

It remains to be seen how the deal will be finalised between the two parties, and whether AFG and Marketform will continue its strong partnership within the Lloyd’s market.