AmTrust Financial Services, Inc. announced Thursday that the fundamental outlook for the company remains positive, responding to negative comments in a report on a research website.
The report is being circulated by parties that have a vested interest in the common shares of company declining in value, AmTrust said in a statement about the report from GeoInvesting questioning some of the insurer’s accounting practices.
“AmTrust’s financial position has never been stronger,” said CEO and President Barry Zyskind in a statement.
“We are excited about the future for all of our divisions. We are growing successfully in very attractive insurance markets in our workers compensation insurance business, extended warranty operations and international business.
“We believe that recent negative articles that individuals have distributed are false and misleading and are being distributed with the intention of manipulating the shares of AmTrust in order to benefit those who own short position in our shares.”
The statement continued stating that the company has addressed issues in its quarterly earnings calls and public filings that have been raised regarding its investment in life settlements, clarifying the accounting of the life settlement portfolio.
In addition, over the past several years, the company, with the approval of the Luxembourg insurance authorities, has acquired a number of Luxembourg reinsurance companies at a discount to their asset value from multinational companies. The company consolidates the results of all of its insurance subsidiaries, including the results of the Luxembourg reinsurance companies. The Company looks forward to discussing its year-end results in its next quarterly conference call.
Source: AmTrust Financial Services, Inc.