Business Moves

Assurant, Safeco Financial Institution Solutions

Assurant Inc., a provider of specialty insurance and insurance-related products and services, acquired all of the outstanding capital stock of Safeco Finan-cial Institution Solu-tions Inc. based in Seattle, Wash., a Cali-fornia corporation and indirect subsidiary of Safeco Corporation.

Financial terms of the transaction were not disclosed. Assurant is financing the transaction through existing cash resources and expects that the transaction will not be material to its financial position or results of operations.

Safeco FIS is the fourth largest provider of creditor-placed homeowners insurance and direct tracking services for mortgage lenders and servicers nationwide. Safeco FIS will become part of Assurant’s Specialty Property business segment.

In addition to Safeco FIS’s approximate $140 million in annual premiums and fees, the acquisition will add complementary distribution and administrative capabilities to Assurant’s Specialty Property business. In connection with the closing of the transaction, Assurant also entered into a reinsurance agreement with certain Safeco insurance companies.

Source: Assurant Inc.

American Financial Group, Ceres Group

Cincinnati-based American Financial Group Inc. has reported that its 81 percent-owned subsidiary, Great American Financial Resources Inc. signed a definitive merger agreement to acquire all of the outstanding shares of Ceres Group Inc. through a cash merger. Under terms of the merger agreement, GAFRI will pay $6.13 in cash for each outstanding share of Ceres common stock, for a total purchase price of approximately $205 million on a fully diluted basis.

S. Craig Lindner, co-CEO of AFG and president and CEO of GAFRI, commented on the transaction by saying that the acquisition of Ceres is consistent with the strategy of using the company’s excess capital to grow its core lines of business. The transaction is expected to be completed in the third quarter of 2006. The transaction is subject to the approval of Ceres’ stockholders, certain state insurance department approvals and other customary conditions.

Ceres provides an array of health and life insurance products through its medical segment and senior segment. With assets of approximately $775 million, Ceres has approximately 600 employees located at its Cleveland, Ohio, headquarters and at offices in Omaha, Neb., and Mission, Kan.

Source: American Financial Group, Inc.

The Hartford, Chicago

The Hartford Financial Services Group Inc. created a new office in the greater Chicago area dedicated solely to processing claims that arise out of catastrophic events.

This new catastrophe office will function as part of The Hartford’s existing property claim operations in that city, and will focus on handling significant losses that arise from either man-made or natural disasters, according to a release issued by the company.

Located in suburban Aurora, Ill., the office is staffed by a team of 36 claims representatives. They will enhance the company’s ability to respond to the unique needs of customers following a catastrophic event, such as a devastating hurricane or tornado.