Canopius AG announced it has signed a definitive sale and purchase agreement to purchase AmTrust at Lloyd’s, a division of AmTrust Financial, subject to regulatory approval.
Upon completion, which is expected in Q3 2019, the deal will result in the merger of Canopius’ Lloyd’s business with that of AmTrust at Lloyd’s, creating a top-five Lloyd’s insurer with combined premiums of approximately $2.2 billion, said Zurich-headquartered Canopius.
Financial details of the deal were not disclosed.
From Jan. 1, 2020, Canopius plans to merge its Syndicate 4444 with AmTrust Syndicate 1861 under the management of Canopius Managing Agents. As part of the transaction, AmTrust Financial Services Inc. will become a significant minority shareholder in Canopius.
In March 2018, Canopius became a standalone business after it was purchased from Sompo Holdings by a private equity consortium led by Centerbridge Partners for $952 million.
“I am delighted at the prospect of welcoming our talented new colleagues from AmTrust at Lloyd’s. Today’s announcement marks a transformational step in our determination to build a leading Lloyd’s franchise,” commented Canopius Chairman Michael Watson.
“The AmTrust at Lloyd’s business brings significant underwriting expertise, product diversification, and scale to the Canopius portfolio,” added Watson.
“Together we will broaden the product and service proposition we offer our highly-valued clients and distribution partners,” he said. “Quite simply, this is a unique and exciting opportunity which places us amongst the top five businesses at Lloyd’s and we welcome AmTrust as a significant minority shareholder in Canopius.”
AmTrust Financial Chairman and CEO Barry Zyskind said: “The sale of AmTrust at Lloyd’s to Canopius is a significant step in the AmTrust Forward vision to be a leading specialty commercial P&C insurer focused on local markets and niche products where we can add significant value. This transaction joins AmTrust with a great partner in Canopius through our minority stake in a top-five Lloyd’s syndicate. Our Lloyd’s clientele and employees will be well served by the new, larger, Canopius operation.”
New York City-based AmTrust Financial Services, Inc., a multinational insurance holding company, was privatized in November 2018, in a $2.7 billion deal funded by founding family members and shareholders George and Leah Karfunkel along with its CEO Barry Zyskind and private equity funds from Stone Point Capital.
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