Business Moves

November 1, 2009

AmTrust, American Capital, GMAC

AmTrust Financial Services, Inc. is making an investment in American Capital Acquisition Corp. in connection with the acquisition by ACAC of GMAC’s U.S. consumer property/ casualty insurance business.

AmTrust said it will initially invest approximately $42.5 million. GMAC’s consumer property/ casualty insurance unit sells automobile coverages through 10,500 independent agents in 12 core markets, as well as exclusive relationships with 23 affinity partners.

GMAC’s U.S. consumer property/ casualty insurance business had net written premium in excess of $1 billion in 2008 that encompassed all 50 states. Its coverages include standard/preferred auto, RVs, non-standard auto and commercial auto. The investment includes 10 statutory insurance companies that write the automobile coverages for GMAC.

American Capital Acquisition Corp. is an affiliate of American Capital

Partners, LLC, a newly formed acquisition corporation. The principal of ACAC was a founder of AmTrust Financial Services, Inc. and Maiden Holdings, Ltd.

AmTrust Financial Services, Inc., headquartered in New York City, is a multinational insurance holding company.

Aquiline Capital, Conning

Private equity firm Aquiline Capital Partners LLC, which is run by Jeffrey Greenberg, has acquired insurance consulting and asset management provider Conning & Co. from Swiss Reinsurance Co. Ltd.

Conning & Co. reported the closing of the transaction today. Conning is headquartered in Hartford, Connecticut with additional offices in New York, London and Dublin. Terms of the deal were not disclosed.

When the deal was announced in June, Hartford, Conning said it would use Aquiline’s investment to strengthen its infrastructure, add to its services, acquire talent and pursue strategic opportunities.

Conning has about $70 billion of general account assets under management and $100 billion of total assets under contract.

New York-based Aquiline invests in property and casualty insurance, asset management and life insurance companies.

Risk Services

Florida-based Risk Services, a provider of traditional and alternative commercial insurance programs, has expanded its workers’ compensation program administrator division nationally.

Risk Services said it will provide brokers and agents workers’ compensation options that focus on reducing costs. In addition to offering traditional workers’ compensation, Risk Services said it will offer a “pay-as-you-go” product that promises to provide business owners with better cash flow.

Chartis

Chartis, formerly AIG, announced the formation of a new logistics unit by its Global Marine and Energy insurance division. The logistics unit’s offering will include include freight liability and cargo insurance. This helps clients meet the exposures faced when expanding the scope of their services. In addition, clients will have access to global supply chain loss control services.

The unit will be led by Bryan Rettmann, an insurance industry veteran and logistics expert.

Chartis, headquartered in New York, is the new brand that includes Commercial Insurance, Foreign General Insurance, and Private Client Group operations of AIG.

AIG, Nan Shan Life

American International Group is trying to sell its Taiwan life insurance unit for $2.15 billion, marking the largest disposal since its U.S. government bailout.

The sale is to two little-known buyers — a start-up financial group run by a former Citigroup banker and an obscure, publicly traded Hong Kong holding company with a market value of $111 million.

“It (deal) has to be approved by Taiwan’s investment commission first,” said Lee Chi-Chu, vice chairperson of the Financial Supervisory Commission.

Primus Financial, the firm founded by Citi’s former Asia investment banking head, together with China Strategic Holdings, are to buy Nan Shan Life, ending a five-month auction. Nan Shan, a top three Taiwan insurer, has assets of $46.4 billion and a market share of 10 percent with its 4 million customers. Primus will own around 20 percent and China Strategic 80 percent, according to the companies.

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