Global specialty re/insurer AF Group has entered into a definitive agreement through its subsidiary, Accident Fund Insurance Company of America, to purchase AmeriTrust Group from Fosun.
Investment banking and reinsurance brokerage, Stonybrook Capital acted as advisors for AF Group during the acquisition, whilst Deutsche Bank were advisors for Fosun.
In a press release, it states that the acquisition is expected to be completed after obtaining regulatory approvals.
AmeriTrust, formerly known as Meadowbrook insurance, was founded in 1955 and is headquartered in Southfield, Michigan.
The company offers specialty insurance programs and products including workers’ compensation, commercial package and automotive business coverages, and comprehensive product offerings in various industry segments.
However, AmeriTrust’s primary focus is underwriting commercial insurance lines and providing insurance administration services.
Fosun purchased AmeriTrust in 2015, and since then, premiums within the company have grown remarkably well, making AmeriTrust a financially strong company, rated “A-“ (Excellent) by A.M. Best.
“This exciting acquisition aligns two world-class organizations toward a common goal of providing exceptional, customer-focused insurance products and services through our valued agents,” said Lisa Corless, President and CEO of AF Group.
“The reputation and performance of AmeriTrust is proven in the marketplace, and we’re excited to welcome their exceptional team to our award-winning organization as we work together toward even greater success.”
With this acquisition, AF Group welcomes AmeriTrust’s expertise in the property and casualty space to its enterprise and further enhances its successful specialty and workers’ compensation products and its capabilities in other lines of insurance.
Furthermore, this investment also reinforces AF Group’s increasingly prominent position and reputation in the property and casualty insurance market, which has grown significantly throughout the last decade.
In addition, AF Group is recognised for its financial strength as a Ward’s 50 company, and has earned an “A” (Excellent) rating from A.M. Best.
Addressing Stonybrook Capital’s support throughout the acquisition, Corless said: “We are very appreciative of the support and resources provided by Stonybrook Capital to help make this pending acquisition successful. The Stonybrook team represent true partners, and we are grateful for their continued insight and collaboration.”
Joseph Scheerer, Principal & CEO of Stonybrook Capital, commented: “I could not be any more pleased with this transaction and with our team and our partnership with AF Group. Having gone back, personally, to the late 1990s with AmeriTrust and now having the privilege of saying the AF Group is a client of our firm, is an honour.
Thomas Deane, Partner at Stonybrook Capital, added: “Bringing two well-known Michigan insurance companies together made great strategic sense. We’re proud to have had the opportunity to work on the project and with the highly skilled team at AF Group.”
