BANKING / FINANCE

A group of investors including conservative economist Arthur B. Laffer has come up with $2.7 million in a private stock offering to fund American Patriots Inc., a Corona del Mar insurance holding company.

The firm was formed early last year and is negotiating to purchase a company that underwrites workers compensation insurance and excess and surplus insurance, said Joseph V. Delaney, chairman and chief executive of American Patriots.

Excess and surplus insurance covers policy holders with coverage not only for extra insurance but also for new or unusual risks.

Delaney said American Patriots will turn any company it acquires into its subsidiary. He said the acquisition is expected to be announced soon.

Up to 40 institutional investors already have been lined up to provide more than $200 million in senior debt to help finance the purchase of a company, he said.