AmTrust Financial Services, Inc. Enters Into Agreement to Acquire Car Care
Plan (Holdings) Limited
NEW YORK, Nov. 1, 2012 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc.
(Nasdaq:AFSI) (the "Company") announced today that one of its wholly owned
subsidiaries has entered into an agreement to acquire Car Care Plan (Holdings)
Limited ("CCPH") from Ally Insurance Holdings, Inc. ("Ally") for approximately
$70 million. The Company expects to fund the purchase using existing working
capital. CCPH has total assets in excess of $360 million. Over the next year,
CCPH is projected to generate revenue for the Company in excess of $140
million including fee income of more than $30 million and pre-tax profits of
over $14 million.
CCPH, a wholly owned subsidiary of Ally, provides insurance and administrative
services to major auto manufacturers for auto extended warranty, guaranteed
asset protection (GAP), wholesale floor plan insurance and other auto warranty
and insurance products. CCPH underwrites many of its products as well as the
products of third-party administrators through its subsidiary Motors Insurance
Company Limited, an FSA-authorized UK insurer. CCPH is headquartered in
Thornbury, West Yorkshire in England.CCPH has operations in the United
Kingdom, Europe, China, North America and Brazil.
"We are excited about the addition of CCPH's successful and geographically
diverse extended warranty and insurance platform," said the Company's
President and CEO, Barry Zyskind. "The combination of CCPH with our existing
operations significantly expands our international warranty footprint and
positions AmTrust to provide a unique international operation to service the
growing needs of large auto manufacturers. The talent and experience of the
combined organization is expected to accelerate revenue growth and enhance
shareholder value as we deliver market leading insurance products and services
to our clients."
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., headquartered in New York City, is a
multinational insurance holding company, which, through its insurance
carriers, offers specialty property and casualty insurance products, including
workers' compensation, commercial automobile and general liability; extended
service and warranty coverage.For more information about AmTrust, visit
www.amtrustgroup.com, or call AmTrust toll-free at 855-327-2223.
The AmTrust Financial Services, Inc. logo is available at
Forward Looking Statements
This news release contains "forward-looking statements" that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. The forward-looking statements are based on the Company's current
expectations and beliefs concerning future developments and their potential
effects on the Company. There can be no assurance that actual developments
will be those anticipated by the Company.Actual results may differ materially
from those expressed or implied in these statements as a result of significant
risks and uncertainties, including, but not limited to, non-receipt of
expected payments from insureds or reinsurers, changes in interest rates, a
downgrade in the financial strength ratings of our insurance subsidiaries, the
effect of the performance of financial markets on our investment portfolio,
our estimates of the fair value of our life settlement contracts, development
of claims and the effect on loss reserves, accuracy in projecting loss
reserves, the cost and availability of reinsurance coverage, the effects of
emerging claim and coverage issues, changes in the demand for our products,
our degree of success in integrating acquired businesses, the effect of
general economic conditions, state and federal legislation, regulations and
regulatory investigations into industry practices, risks associated with
conducting business outside the United States, developments relating to
existing agreements, disruptions to our business relationships with Maiden
Holdings, Ltd., American Capital Acquisition Corporation, or third party
agencies and warranty administrators, difficulties with technology or breaches
in data security, heightened competition, changes in pricing environments, and
changes in asset valuations.The forward-looking statements contained in this
news release are made only as of the date of this release. The Company
undertakes no obligation to publicly update any forward-looking statements
except as may be required by law. Additional information about these risks and
uncertainties, as well as others that may cause actual results to differ
materially from those projected, is contained in the Company's filings with
the Securities and Exchange Commission, including its annual report on Form
10-K and its quarterly reports on Form 10-Q.
CONTACT: AmTrust Financial Services, Inc.
Elizabeth Malone CFA
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