AmTrust Financial Services, Inc. has announced that one of its wholly owned subsidiaries has entered into an agreement to acquire Sagicor Europe Limited and its wholly-owned subsidiaries (SEL), including Sagicor at Lloyd's Limited for approximately £56 million ($86.1 million), which is £15 million ($23.05 million) above SEL's net asset value as of Dec. 31, 2012.
Sagicor of Lloyd's Limited, is a managing agency and owner of Lloyd's property/casualty insurance syndicate 1206 with stamp capacity of £200 million ($307 million) and Lloyd's life insurance syndicate 44 with stamp capacity of £7 million ($10.8 million). In addition, SEL includes a Cayman Islands domiciled reinsurance entity.
The transaction is expected to close in the fourth quarter of 2013, pending regulatory and other necessary approvals. AmTrust, a provider of specialty property/casualty insurance products, including workers' compensation, commercial automobile and general liability, as well as extended service and warranty coverage, expects to fund the purchase using existing working capital.
"We are excited about the addition of SEL's managing agency and Lloyd's syndicates to our organization. Access to Lloyd's global resources greatly expands the capabilities of our insurance business," said AmTrust President and CEO Barry Zyskind. "Lloyd's brand, rating and efficient capital structure contributes significantly to our global insurance platform. We believe the combined organizations' talent, experience and commitment to underwriting discipline will enhance shareholder value."
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