AmTrust Financial Services is snatching up a Dutch reinsurer of surety and trade credit insurance for more than $167.9 million.
The multinational insurance holding company said it will pay at least that much for Amsterdam-based Nationale Borg-Maatschappij (Nationale Borg) and its divisions to owners Egeria and HAL investments. There could be an adjustment to the final purchase price based on Nationale Borg’s tangible book value at the time of closing.
Plans call for sealing the deal by the end of 2015, pending regulatory approval.
What is Nationale Borg? It is a 120-year-old international direct writer and reinsurer of surety and trade credit insurance that does business in over 70 countries. According to AmTrust, it generated $99.2 million in premiums through 2014.
By combining with Nationale Borg, AmTrust will have a global surety business with more than $200 million in premiums, AmTrust president and CEO Barry Zyskind said.
“With the completion of this transaction, AmTrust will be in over 44 countries and have a platform with over one hundred years of experience,” Zyskind noted in prepared remarks. “With this organization, we believe we can continue to build a scalable and profitable operation in the niche market for surety and trade credit insurance.”
AmTrust’s business lines cover a wide range of sectors. Based in New York City, AmTrust offers specialty property/casualty insurance products including workers compensation, commercial auto, general liability and extended service and warranty coverage through its primary insurance subsidiaries.
Source: AmTrust Financial Services