US firm swoops for majority shareholding of Lloyd's insurer

Marketform Group, the non-US medical malpractice specialist, today announced that American Financial Group Inc is to become the majority shareholder in its business, securing the company as a key international specialist insurer.

The deal, which is still subject to approval by Lloyd's and the Financial Services Authority, will see AFG take approximately a 67% share in Marketform, valuing the business at approximately £55m.

The current management and staff will continue to own the remaining one third of the equity. "The new investment from AFG gives 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 growth," said Holly Bellingham, chairman, Marketform Group .

"In essence, it is all change but no change, as the analogy between the philosophies of the two companies will ensure that the Marketform brand, management and values will remain unaltered.

"We are grateful to Caledonia Investments plc, who since taking a minority share in the company in 2003 have supported us admirably, and who will now be exiting their investment as a result of this transaction. "

We are pleased that Marketform has found such a strong trade partner ," added Tim Ingram, Chief Executive, Caledonia Investments plc, "and this can only augur well for the future security and financial performance of the company."

Headquartered in Cincinnati, Ohio, AFG through its Great American Insurance Group specialises in providing commercial property and casualty insurance mainly in the US, together with annuity and supplemental insurance products.

Carl Lindner III, co-chief executive officer of AFG, concluded: "We are excited to partner with Marketform's management and employees to grow our business internationally. We feel that Marketform's existing book of business and underwriting philosophy are a good match for AFG and Great American Insurance Group.

"We are committed to expanding Marketform's current product offerings into several of our speciality businesses. This acquisition supports one of our strategic objectives of increasing AFG's geographic coverage."