AmTrust Financial Services Inc. announced that it has agreed to purchase Comp Options Insurance Co. Inc., a Jacksonville, Florida-based workers’ compensation insurer and a subsidiary of Blue Cross & Blue Shield of Florida, for cash. Further terms of the transaction were not disclosed. The acquisition is expected to close in the fall of 2014.
OptaComp generated approximately $60 million in workers’ comp insurance premium in Florida during the past 12 months. OptaComp’s products are marketed through a network of independent agents.
“The worker’s comp market in Florida has been a solid performing market for us,” said AmTrust’s Chief Financial Officer Ronald E. Pipoly Jr. “We are well-established there with the acquisitions we’ve made over the years.”
AmTrust said OptaComp’s marketing approach is similar to AmTrust’s in that they both write worker’s comp policies for small businesses that have a low-hazard risk profile. AmTrust also said it looks forward to assessing opportunities to continue working with Blue Cross & Blue Shield of Florida.
AmTrust Financial Services Inc., based in New York City, is a multinational insurance holding company.