AmTrust Financial Services will snatch up CorePointe Insurance Co., a deal intended to give it a better roster of specialty commercial auto insurance products.
Neither side is disclosing financial details in the all-cash M&A deal. Beyond the insurance company, the purchase comes with an established managing general agent distribution network. CorePointe is a subsidiary of CorePointe Group LLC.
CorePointe Insurance, a Michigan-based specialty property/casualty insurance company, markets insurance products geared to automobile and motorcycle dealerships, as well as auto repair shops. Its products are sold through managing general agents, something that AmTrust President and CEO Barry Zyskind said was particularly attractive.
“CorePointe’s key commercial auto related insurance products and established managing general agent distribution provides [AmTrust] with attractive diversification of both products and distribution,” Zyskind said in a prepared statement.
Once the purchase clears regulatory approvals, Zyskind said AmTrust will focus on boosting CorePointe’s profitability by bringing in new operations technology to help increase efficiency and reduce expenses.
AmTrust, a New York-based multinational insurance holding company, has been pursuing expansion in other areas in 2014.
In October, the company closed its purchase of Comp Options Insurance Co., a workers compensation insurer and former subsidiary of Blue Cross & Blue Shield of Florida. Earlier this year, AmtRust also acquired renewal rights for Tower Group International’s commercial lines business. As well, it grabbed The Insco Dico Group, a California-based surety writer.
Source: AmTrust Financial Services