AmTrust reduces loss from operations in Q3
Property/casualty (P&C) insurer AmTrust Financial Services has narrowed its losses from operations in the third quarter of 2018 on lower losses and expenses.
The company which specializes in coverage for small to mid-sized businesses has reported a net loss attributable to stockholders of $84.5 million in the third quarter, down from $174.7 million in the same period of 2017.
Losses and expenses fell to $1.62 billion from $1.87 billion over the period. At the same time, revenues declined to $1.56 billion from $1.64 billion.
However, including investments, the comprehensive loss attributable to AmTrust Financial Services increased to $129.7 million from $110.9 million over the period.
AmTrust is in the process of going private. The deal will see Evergreen Parent, 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, acquiring 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 do not presently own or control.
In June 2018, AmTrust improved the offer price per share of the merger agreement with Evergreen Parent.
Under the terms of the amended agreement, Evergreen will acquire the approximately 45 percent of the company's shares of common stock for $14.75 per share in cash. This represents an increase of $1.25 per share, or 9.3 percent, in cash consideration to AmTrust public stockholders, over the previously agreed upon $13.50 per share, and a 45 percent premium to the company's unaffected closing stock price on January 9, 2018.
The transaction values the fully diluted equity of the company at approximately $2.95 billion, excluding the company's outstanding preferred stock.
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