Liberty Mutual Insurance is to acquire the global surety and credit reinsurance operations of AmTrust Financial Services, Inc., subject to regulatory approvals and customary closing conditions.
The definitive agreement between the two firms sees Liberty Mutual Insurance acquire four AmTrust businesses: AmTrust Surety; AmTrust Insurance Span; Nationale Borg; and Nationale Borg Reinsurance (NBRe).
The acquisition of the AmTrust Surety division is expected to close in the second-quarter of 2019, while the acquisition of the other three businesses is expected to close in the second-half of 2019. According to an announcement, terms of the deal were not disclosed.
President of Global Risk Solutions at Liberty Mutual, Dennis Langwell, said: “The transaction will further enhance our strong global surety and reinsurance expertise, market leadership, and geographic footprint. Once the transaction closes, we’ll integrate the acquired operations into our current structure.”
Tim Mikolajewski, President of Global Surety, added: “We believe this transaction will strengthen our best-in-class operation, allowing us to better serve our valued agents, brokers, and customers. The added scale and key talent aligns well with our model and goals in the U.S., and will provide a platform for broader global development through AmTrust Insurance Spain, Nationale Borg, and Nationale Borg Reinsurance.”
Barry Zyskind, Chairman and Chief Executive Officer (CEO) of AmTrust, said: “Earlier this year, we announced our plan to become a leading specialty commercial P&C insurer by focusing on local markets and niche products where we can add significant value. The agreement with Liberty Mutual enables us to focus our resources in areas where we can differentiate ourselves through the value we bring to distribution partners and buyers.”