AmTrust Financial Services Inc., a multinational insurance holding company headquartered in New York City, has entered into an agreement to acquire AmeriHealth Casualty Insurance Company from Independence Health Group Inc. for approximately $90 million in cash.
The transaction will be funded with existing working capital. Last year, AmeriHealth Casualty generated gross written premium of approximately $116 million. Pending regulatory approval, the transaction is expected to close during the fourth quarter of 2016.
“With the addition of AmeriHealth Casualty’s operations serving small-to-medium-sized businesses and municipalities, we will expand our presence as one of the largest workers’ compensation carriers in Pennsylvania and New Jersey,” said Barry Zyskind, chairman, president and CEO of AmTrust Financial Services Inc., in a company press release. “AmeriHealth Casualty will bring a strong leadership team and solid book of business. We expect to continue to deliver a high standard of workers’ compensation coverage.”
Independence Health Group will retain CompServices Inc., its third party administrator for workers’ compensation business, following the acquisition. CompServices will provide TPA services to its self-insured customers as well as to AmTrust, in accordance with the terms of the transaction.
AmeriHealth Casualty provides fully insured workers’ compensation insurance operating primarily in Pennsylvania and New Jersey.
Source: AmTrust Financial Services Inc.
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