NEW YORK, April 18, 2016 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the "Company" or “AmTrust”) today announced that it has completed the purchase of Republic Companies, Inc. and its affiliates (“Republic”) from Delek Group Ltd. (TASE:DLEKG), and Republic Insurance Holdings, LLC., for $233 million. The purchase price was a combination of $113 million in cash at closing, approximately $15 million of deferred payments to the sellers of the minority interests and a $105 million, four year, 5.75% annual interest note issued by AmTrust to Delek Group Ltd as well as cash payments to be made over five years.
“We are excited to welcome Republic to the AmTrust organization. The addition of Republic’s diverse product offerings and established market relationships, particularly in the Southwest, presents excellent growth opportunities,” said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. “Republic is another great example of AmTrust seeking to profitably build the business through strategic transactions."
Texas based Republic has been providing property/casualty insurance for over 100 years. In 2015, Republic reported total direct premiums of approximately $762 million. The majority of the business is written in the Southwestern states. In addition, Republic generates fee revenue by providing insurance services to third parties.
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. For more information on AmTrust Financial Services, Inc. For more information on AmTrust please visit our website at www.amtrustgroup.com.
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, 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., 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.
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.