Ohio Casualty to Buy Most of Great American

Ohio Casualty Group Inc. agreed to pay up to $355million for portions of American Financial Group Inc., a Cincinnati-based insurer, adding to its commercial property and casualty insurance business. Ohio Casualty said it will pay $300million in cash and as much as $40million more based on performance. The Hamilton, Ohio-based insurer also would give American Financial, a company run by entrepreneur and investor Carl Lindner, warrants for 3million of its shares. The warrants had a value of $15million in recent days, according to Ohio Casualty. The purchase would involve most of the commercial division of American Financial’s unit Great American Insurance Co., and does not include the California business. The deal would give Ohio Casualty its first business in Connecticut, Massachusetts and New York. Ohio Casualty also said it will increase its stock buyback plan by 1.4million shares to 2.6million. Ohio Casualty shares rose 13 cents to close at $41.75 in Nasdaq trading, while American Financial stock advanced 69 cents to close at $34.44 on the NYSE.