Reinsurer Munich Re to buy Ohio insurer Midland for $1.3B

BERLIN (AP) - Munich Re, one of the world's biggest reinsurers, said today that it's buying the Ohio-based Midland Company, a U.S. specialist insurer, for about 1.3 billion dollars.

The deal's aimed at expanding its reach in the United States.

Munich Re, the world's second largest reinsurer by gross premiums, said it will offer $65 a share for the share of Midland. That's a 13.5 percent premium over Midland's closing share price yesterday.

If Midland's shareholders approve, Munich Re expects to complete the acquisition in the second quarter of next year.

Midland said Munich Re also will assume all outstanding debt obligations.

Munich Re shares fell point-five percent to $192.60 in Frankfurt.