NEW YORK, March 18, 2015 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the "Company" or "AmTrust") today announced that the Company has entered into a definitive agreement, pending regulatory and policyholder approval, to acquire ARI Mutual Insurance Company ("ARI") following the completion of the conversion of ARI to a stock company from a mutual company. The Company has also entered into a quota-share reinsurance agreement with ARI as a first step in the process to complete the acquisition. The transaction is expected to close by the fall of 2015.
"We are pleased to welcome and support ARI's well-established commercial insurance products and distribution into AmTrust and look forward to the completion of the pending transaction," said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. "Profitably leveraging the industry knowledge and product expertise of ARI's management supports our strategy of building shareholder value through accretive acquisitions. In addition, the agreement with ARI is another example of our continued interest in supporting mutual insurers and their capital needs."
"We are excited about the opportunity to become a part of AmTrust," commented Karen S. Fulton, President and CEO of ARI. "AmTrust's "A" (Excellent) A.M Best rating and extensive geographical footprint enables ARI to expand its commercial auto insurance franchise."
ARI is headquartered in Newtown, Pennsylvania and its history can be traced back more than a century. ARI is one of the top ten writers of commercial automobile insurance in New Jersey and has recently entered Pennsylvania and Maryland. During 2014, ARI wrote approximately $58 million in premiums. The majority of the business was written in New Jersey.
Locke Lord LLP acted as AmTrust's legal advisor
Griffin Financial Group, LLC acted as ARI's financial advisor and Stevens & Lee acted as ARI's legal advisor.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York City, offers specialty property and casualty insurance products, including workers' compensation, commercial automobile, general liability and extended service and warranty coverage through its primary insurance subsidiaries rated "A" (Excellent) by A. M. Best.
This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, non-receipt of expected payments from insureds or reinsurers, changes in interest rates, a downgrade in the financial strength ratings of our insurance subsidiaries, the effect of the performance of financial markets on our investment portfolio, the amounts, timing and prices of any share repurchases made by us under our share repurchase program, our estimates of the fair value of our life settlement contracts, development of claims and the effect on loss reserves, accuracy in projecting loss reserves, the cost and availability of reinsurance coverage, the effects of emerging claim and coverage issues, changes in the demand for our products, our degree of success in integrating acquired businesses, the effect of general economic conditions, state and federal legislation, regulations and regulatory investigations into industry practices, risks associated with conducting business outside the United States, developments relating to existing agreements, disruptions to our business relationships with Maiden Holdings, Ltd., National General Holdings Corp., ACP Re, Ltd. or third party agencies and warranty administrators, difficulties with technology or breaches in data security, heightened competition, changes in pricing environments, and changes in asset valuations. The forward-looking statements contained in this news release are made only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statements except as may be required by law. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected, is contained in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q.
CONTACT: For more information, please contact: AmTrust Financial Services, Inc. Investor Relations Elizabeth Malone CFA firstname.lastname@example.org 646.458.7924
Source:AmTrust Financial Services, Inc.