AmTrust Buys Workers’ Compensation Unit from Florida Blue Cross

AmTrust Financial Services has closed its purchase of a workers’ compensation insurer—a subsidiary of Blue Cross & Blue Shield of Florida (Florida Blue)—right according to plan.

AmTrust isn’t disclosing its purchase price of Comp Options Insurance Co., but the New York-based multinational insurance holding company did say it is paying cash, at approximately 1.2 times tangible book value.

Over the last 12 months, Comp Options produced about $70 million in workers’ compensation premium in Florida. AmTrust said that it shares a marketing approach with Comp Options, which also targets businesses with a low-hazard risk profile. Comp Options sells its coverage through independent agents.

AmTrust President and CEO Barry Zyskind said in a statement that his company looks forward to integrating Comp Options’ low-hazard workers’ comp insurance risks and related staff into its own operations. He said AmTrust would also work with Florida Blue “as a marketing partner to further build our insurance business and add value for our shareholders.”

AmTrust initially announced its planned acquisition in late June 2014.

Source: AmTrust Financial Services Inc