NEW YORK, Jan. 21, 2016 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) (“the Company”) announced the results of the special meeting of members of ARI Mutual Insurance Company ("ARI") held this morning where the members approved, among other matters, the conversion of ARI from a mutual holding company to stock form. In addition, the Company completed its offering of shares of its common stock for cash on a subscription basis to the ARI members and to non-employee directors of ARI. The Company received subscriptions for approximately $276,000. The Company sold the shares at a purchase price of $44.6989 per share ($22.3494 on a post-split basis), which represented a 20% discount to the volume-weighted average trading price of a share of its common stock, as reported on the NASDAQ Global Select Market, for the 10-trading day period ending Wednesday, January 20, 2016, which was $55.8736.
Pursuant to the terms of the Plan of Conversion, the purchase price and shares issued by the Company will be adjusted to reflect the Company’s stock split effective on February 2, 2016. Therefore, upon the filing of ARI’s amended and restated certificate of incorporation with the Secretary of State of the Commonwealth of Pennsylvania on January 22, 2016 and the effective date of the stock split on February 2, 2016, the Company will deliver 12,347 shares of its common stock, which represents the number of shares sold in the offering at the volume-weighted average trading price on a post-split basis.
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. For more information about AmTrust, visit www.amtrustgroup.com, or call AmTrust toll-free at (855) 327-2223.
Forward Looking Statements
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 Holding Corp., ACP Re, Ltd., or third party agencies and warranty administrators, breaches in data security or other disruptions involving 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.
AmTrust Financial Services, Inc. SVP Investor Relations and Corporate Development Elizabeth C. Malone, CFA firstname.lastname@example.org (646) 458-7924
Source: AmTrust Financial Services, Inc.