AmTrust Financial Services, Inc. Completes the Acquisition of Car Care Plan
NEW YORK, Feb. 28, 2013 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc.
(Nasdaq:AFSI) (the "Company") announced today that a wholly owned subsidiary
of the Company, IGI Group Limited, completed the acquisition of Car Care Plan
(Holdings) Limited ("CCPH") from Ally Insurance Holdings, Inc. ("Ally") for
approximately $70 million. The purchase price represented the consolidated
tangible book value of CCPH as of the closing, subject to certain adjustments.
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.
As a part of the acquisition, Ally agreed to a three-year non-compete and
non-solicit, subject to certain limited exceptions and will provide additional
indemnity for liabilities of CCPH for pension plans, tax liabilities and other
CCPH 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.Headquartered in the United Kingdom, CCPH has operations in the
United Kingdom, Europe, China, North America and Brazil.
"CCPH is a great company and is an excellent fit for our Specialty Risk and
Extended Warranty Division," said AmTrust Financial Services, Inc. President
and CEO, Barry Zyskind."We believe that CCPH's established customer
relationships, strong management and global presence will help us continue to
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 866.203.3037.
The AmTrust Financial Services, Inc. logo is available at
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, breaches in data security or other
disruptions with our technology, 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
Press spacebar to pause and continue. Press esc to stop.