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 still 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.