Enstar invests $200m in AmTrust parent company

Bermuda-based Enstar has completed an investment of $200 million in Evergreen Parent, the entity that has been used t o take AmTrust Financial Services private and holds its equity.

Evergreen Parent acquired the approximately 45 percent of AmTrust’s issued and outstanding common shares that the Karfunkel-Zyskind Family and certain of its affiliates and related parties did not already own or control.

The entity has been formed by private equity funds managed by Stone Point Capital and the Karfunkel-Zyskind Family.

Following the closings, Enstar subsidiaries collectively own approximately 7.4 percent of the capital units of Evergreen, and AmTrust is a wholly-owned subsidiary of Evergreen.

AmTrust reported a net loss of $348.9 million for 2017 after a net profit of $430.4 million in 2016. Zyskind had previously argued that as a private enterprise AmTrust will be able to focus on long-term decisions, without the emphasis on short-term results. AmTrust wants to address financial controls as well as pricing and reserve adequacy issues.