Liberty Mutual Insurance has signed a definitive agreement to acquire the global surety and credit reinsurance operations of AmTrust Financial Services, Inc., a multinational property and casualty insurer specializing in coverage for small to midsized businesses.
Upon closing, Liberty Mutual will acquire four AmTrust businesses:
• AmTrust Surety, previously managed by Insco Dico, which provides contract, commercial, and subdivision bonds primarily in the Western United States; • AmTrust Insurance Spain, which offers surety bonds in Spain and Latin America; • Nationale Borg, which provides surety, worker disability, and home purchase bonds in the Netherlands and Belgium; and • Nationale Borg Reinsurance (“NBRe”), a global provider of surety, trade credit and political risk reinsurance.
The AmTrust Surety portion of the acquisition is expected to close in the second quarter of 2019, and the AmTrust Insurance Spain, Nationale Borg, and NBRe portions are expected to close in the second half of 2019, subject to regulatory approvals and customary closing conditions. Terms of the deal were not disclosed.
“The transaction will further enhance our strong global surety and reinsurance expertise, market leadership, and geographic footprint,” noted Dennis Langwell, president of global risk solutions at Liberty Mutual. ”Once the transaction closes, we'll integrate the acquired operations into our current structure.”
“We believe this transaction will strengthen our best-in-class operation, allowing us to better serve our valued agents, brokers, and customers,” noted Tim Mikolajewski, the president of global surety at Liberty Mutual. “The added scale and key talent aligns well with our model and goals in the U.S., and will provide a platform for broader global development through AmTrust Insurance Spain, Nationale Borg, and Nationale Borg Reinsurance.”
“Earlier this year, we announced our plan to become a leading specialty commercial P&C insurer by focusing on local markets and niche products where we can add significant value,” said Barry Zyskind, chairman and chief executive officer of AmTrust. “The agreement with Liberty Mutual enables us to focus our resources in areas where we can differentiate ourselves through the value we bring to distribution partners and buyers.”
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Liberty Mutual Insurance in the transaction.
Bank of America Merrill Lynch served as financial advisor to AmTrust in connection with the transaction, and Debevoise & Plimpton LLP was legal counsel.
Learn more: www.libertymutualinsurance.com; www.amtrustfinancial.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].