In 1997, The John Nuveen Company (Nuveen), our asset management segment, acquired Flagship Resources, Inc., a firm that manages the assets of both its sponsored and marketed family of mostly tax-free mutual funds and its private investment accounts, for a total cost of approximately $72 million, plus as much as an additional $20 million contingent upon meeting future growth targets. Nuveen also acquired Rittenhouse Financial Services, Inc., an equity and balanced fund investment management firm, in 1997 for a total cost of approximately $147 million. These acquisitions added approximately $13.8 billion to Nuveen's assets under management. The cost of these acquisitions was largely composed of goodwill of $213 million, which is being amortized over 30 years.

In late 1996, we acquired Afianzadora Insurgentes, S.A. de C.V. (Afianzadora), a surety bond company in Mexico, for $65 million in cash. This acquisition resulted in goodwill of $18 million, which is being amortized over 20 years.

In 1996, we acquired Northbrook Holdings, Inc. and its three insurance subsidiaries from Allstate Insurance Company. Northbrook and its subsidiaries underwrite various property-liability commercial insurance products throughout the United States. Our total cost for this acquisition was approximately $193 million, which was provided from internal funds. We recorded goodwill of approximately $71 million that we are amortizing over 15 years.

In the Northbrook purchase agreement, we agreed to pay Allstate additional consideration of up to $50 million in the event a redundancy develops on the acquired Northbrook reserves between the purchase date and July 31, 2000. Similarly, Allstate agreed to pay us consideration of up to $100 million in the event a deficiency develops on those reserves during the same time period. Any amounts to be paid by either party will depend on the extent of the redundancy or deficiency and will be determined in accordance with terms described in the purchase agreement.