amtrust_source-amtrust-2--1
Source: AmTrust
21 January 2019Insurance

AmTrust Financial to delist its preference shares citing costs

The board of directors of AmTrust Financial Services has approved the voluntary  delisting of all six series of preferred stock and two series of subordinated notes from the New York Stock Exchange.

The move follows the buyout of its common shares last year in a deal that valued the business at approximately $2.95 billion.

It said the decision to delist and deregister the listed securities was based on its “determination that the administrative costs and burdens associated with maintaining the listings on the NYSE and the registration exceed the benefits given the small number of record holders and low daily trading volume”.

It added: “In addition, this decision was made in light of the company’s new ownership structure and the resulting changes to its long-term strategy, following the completion of AmTrust’s go-private transaction on November 29, 2018 and the delisting of its common stock.”

That deal involved Evergreen Parent acquiring approximately 45 percent of the company’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.

Evergreen Parent is an entity formed by private equity funds managed by Stone Point Capital, together with Barry Zyskind, chairman and CEO of AmTrust, George Karfunkel and Leah Karfunkel.

The company stressed that the Preferred Stock and the Subordinated Notes will continue to remain an outstanding obligation of AmTrust. The Company plans to continue paying quarterly dividends and interest on the Listed Securities consistent with its rights and obligations.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

Belisle/Fredricks leave Markel CATCo after “undisclosed personal relationship” uncovered

Germany-China agree to bolster ties on re/insurance links

Carriers more willing to ‘walk away’ if profits inadequate

Chubb pegs Q4 2018 nat cat loss at $585m

AXA XL ready for Brexit as it completes move to Ireland

Download our survey inforgraphic: 'The Impact of Automation on Commercial Lines'

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
2 March 2018   A group of investors is taking AmTrust Financial Services private to create a better environment to fix the problems that have been haunting the New York-based insurer. AmTrust needs to address financial controls as well as pricing and reserve adequacy issues.
Insurance
29 November 2018   AmTrust Financial Services has completed the merger transaction in which Evergreen Parent acquired the approximately 45 percent of the company’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.