Merger And Acquisition (m&a) Text On CloudsAmTrust Financial Services said it has agreed to buy ARI Mutual Insurance Company, a deal that will give it access to a number of regional commercial insurance products and related distribution channels.

Neither side is disclosing financial terms for the transaction, which will close by the fall of 2015.

AmTrust’s purchase will take place after ARI converts to a stock company. As a first step toward the eventual acquisition, AmTrust signed a quota-share reinsurance agreement with ARI, a Pennsylvania-based company.

Barry Zyskind, AmTrust’s president and CEO, said in prepared remarks that the acquisition of ARI’s “well-established commercial insurance products and distribution” supports his company’s strategy “of building shareholder value through accretive acquisitions.”

He also said that the ARI deal reflects AmTrust’s continued focus on “supporting mutual insurers and their capital needs.” ARI is relatively small, rated as a top ten writer of commercial auto insurance in New Jersey. It recently expanded into Pennyslvania and Maryland, according to the deal announcement. ARI wrote $58 million in premiums in 2014, mostly in New Jersey.

ARI President and CEO Karen Fulton added, also in prepared remarks, that she sees AmTrust and its “extensive geographical footprint” as a way for ARI “to expand its commercial auto insurance franchise.

AmTrust, a New York-based multinational insurance holding company, agreed last fall to buy CorePointe Insurance Co., another targeted acquisition that gives it a better roster of specialty commercial auto insurance products.

AmTrust announced in January that it would pursue a $162 million stock offering.

Source: AmTrust Financial Services Inc.

Topics Commercial Lines Business Insurance