A.M. Best Comments on Ratings of American Financial Group, Inc. and National Interstate Corporation Following Announcement of Merger Agreement

OLDWICK, N.J.--(BUSINESS WIRE)--

A.M. Best has commented that the ratings of American Financial Group, Inc. (AFG) (Cincinnati, OH) AFG and its insurance subsidiaries, and the ratings of National Interstate Corporation (NATL) (headquartered in Richfield, OH) NATL and its insurance subsidiaries are unchanged following the July 25, 2016, announcement that an agreement has been reached under which AFG will acquire all shares of NATL not currently owned by AFG's subsidiary Great American Insurance Company (GAIC).

Under the terms of the agreement AFG reached with the Special Committee of the Board of Directors of NATL, AFG will acquire the 49% of NATL shares that are not currently owned by GAIC. Based on a $32 per share purchase price plus a $0.50 special dividend, the purchase price to acquire the remaining shares of NATL will be approximately $320 million. The proposed transaction will not be subject to any financing conditions.

The transaction is expected to close during the fourth quarter of 2016, pending regulatory approval. A.M. Best will continue to hold discussions with management to monitor the progress of the transaction and evaluate any developments and implications for future impact on the ratings.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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