AmTrust to acquire workers’ compensation insurance provider

AmTrust Financial Services has entered into an agreement to acquire AmeriHealth Casualty Insurance Company from the Independence Health Group for approximately $90 million in cash.

AmeriHealth Casualty provides fully insured workers’ compensation insurance operating primarily in Pennsylvania and New Jersey.

The transaction if expected to close during the fourth quarter of 2016, and is to be funded with existing working capital.

IHG will retain its third party administrator for workers’ compensation business, CompServices.

CompServices will provide TPA services to its self-insured customers as well as to AmTrust, in accordance with the terms of this transaction.

“We look forward to welcoming AmeriHealth Casualty to the AmTrust group of commercial property and casualty companies,” said Barry Zyskind, chairman, president and CEO of AmTrust Financial Services.

“With the addition of AmeriHealth Casualty’s operations serving small-to-medium-sized businesses and municipalities, we will expand our presence as one of the largest workers’ compensation carriers in Pennsylvania and New Jersey.”

“AmeriHealth Casualty will bring a strong leadership team and solid book of business. We expect to continue to deliver a high standard of workers’ compensation coverage.”