AmTrust to acquire automobile insurer
US insurer AmTrust is set to acquire automobile insurer ARI Mutual Insurance Company, following the conversion of ARI to a stock company from a mutual company.
AmTrust has also entered a quota-share reinsurance agreement with ARI as a first step in the process to complete the acquisition, which is expected to close by the autumn of 2015, pending regulatory and policyholder approval.
During 2014, ARI wrote approximately $58 million in premiums, with majority of the business written in New Jersey.
Barry Zyskind, president and chief executive officer (CEO) of AmTrust, said: "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.
“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."
Karen Fulton, president and CEO of ARI, added: "We are excited about the opportunity to become a part of AmTrust. AmTrust's "A" (Excellent) AM Best rating and extensive geographical footprint enables ARI to expand its commercial auto insurance franchise."
