Belgian-Dutch banking and insurance group Fortis AG is buying American Bankers Insurance Group for $2.4 billion, a move the companies said would increase earnings, expand markets and eventually increase the number of products sold.
Miami-based American Bankers, a leader in selling specialty insurance, such as coverage for credit cards, bank loans and mobile homes, had been the target of a bidding war last year, but no deal was consummated.
Fortis, based in Brussels and one of the world’s largest insurance companies, said Monday that it offered $55 a share for all 43 million shares of American Bankers’ common stock. Fortis also would assume $194 million of debt.
American Bankers stock shot up 12 percent on the news, gaining $5.62 to $52 on the New York Stock Exchange.
The deal, which is expected to close before October, would be the latest example of a European insurer buying a U.S. financial company.
Aegon NV of the Netherlands recently agreed to buy Transamerica Corp. for $9.7 billion in cash and stock after buying Providian Corp. for $2.6 billion in 1997. ING Group NV, another Dutch company, bought life insurer Equitable of Iowa Cos. for $2.2 billion in 1997.
