NEW YORK, Oct. 27, 2015 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the "Company" or "AmTrust") today announced that it has entered into an agreement to acquire Genworth Financial Mortgage Insurance Limited ("GFMI") from a subsidiary of Genworth Financial, Inc. (NYSE:GNW), for approximately $60 million in cash. As of June 30, 2015, GFMI's tangible book value was approximately $155 million. Based in the U.K., GFMI is a well-known organization in the European mortgage insurance market, currently providing products in the U.K., Finland, Italy and Germany. Pending regulatory approval, the parties anticipate closing will occur during the first quarter of 2016.
"We believe GFMI represents an excellent opportunity for the diversification and expansion of AmTrust's international insurance business. We are excited to rebuild GFMI's mortgage insurance business in Europe, especially at a time when we believe market conditions for mortgage insurance in Europe are improving," said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. "With this transaction, AmTrust will acquire an experienced management team and solid pipeline of business at a purchase price that we believe will reward our shareholders with accretive book value."
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 Company.
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, breaches in data security or other disruptions with our technology, 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. SVP Investor Relations Elizabeth Malone CFA firstname.lastname@example.org 646.458.7924
Source:AmTrust Financial Services, Inc.