AmTrust Financial Services, Inc. Announces Agreement to Acquire Warranty Solutions(R), a Wells Fargo business
NEW YORK, May 7, 2015 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the "Company" or "AmTrust") today announced that the Company has entered into a definitive agreement to acquire Warranty Solutions®, a Wells Fargo (NYSE:WFC) business ("Warranty Solutions") for $152 million in cash. Warranty Solutions designs, markets, administers and underwrites vehicle service contracts for new and used automobiles through a national network of more than 70 active agencies, and 1,500 franchised and independent dealers. Pending regulatory approval, the parties anticipate closing will occur in the third quarter 2015.
"The acquisition of Warranty Solutions provides an outstanding opportunity for our Company to expand our successful vehicle extended warranty operation while also adding to our differentiated Service and Fee business," said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. "Warranty Solutions is an excellent fit for our organization and we look forward to welcoming the talented individuals that have built Warranty Solutions into a successful business."
Warranty Solutions is comprised of the following corporate entities: Warranty Solutions Management Corporation, Heritage Indemnity Company, Westlake Insurance Company (Bermuda) Ltd., Warranty Solutions Administrative Services, Inc., WS Aftermarket Services Corporation and Heritage Mechanical Breakdown Corporation. Upon closing, Warranty Solutions will retain its existing name, leadership, team members and continue working in Lakewood, Colo.
About Warranty Solutions
Warranty Solutions, a Wells Fargo business, provides quality Vehicle Service Contracts and auto-related finance and insurance products to automobile dealerships nationwide. The Warranty Solutions group of businesses includes Vehicle Service Contracts that are administered by Warranty Solutions Management Corporation in all states except Florida, Arizona, Alaska and Wisconsin. In Florida, Arizona, Alaska and Wisconsin, Vehicle Service Contracts are administered by Warranty Solutions Administrative Services, Inc. (FL License #60079). In Florida, Vehicle Service Contracts are also issued by Heritage Mechanical Breakdown Corporation (FL License #60072). All Vehicle Service Contracts offered are insured by Heritage Indemnity Company (CA Certificate of Authority #08549/2008), which is licensed in all states and is rated A (Excellent) by A.M. Best Company. Vehicle Service Contracts are not available in all states.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York City, offers specialty property and casualty insurance products, including workers' compensation, commercial automobile, general liability and extended service and warranty coverage through its primary insurance subsidiaries rated "A" (Excellent) by A. M. Best Company.
This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, non-receipt of expected payments from insureds or reinsurers, changes in interest rates, a downgrade in the financial strength ratings of our insurance subsidiaries, the effect of the performance of financial markets on our investment portfolio, the amounts, timing and prices of any share repurchases made by us under our share repurchase program, our estimates of the fair value of our life
settlement contracts, development of claims and the effect on loss reserves, accuracy in projecting loss reserves, the cost and availability of reinsurance coverage, the effects of emerging claim and coverage issues, changes in the demand for our products, our degree of success in integrating acquired businesses, the effect of general economic conditions, state and federal legislation, regulations and regulatory investigations into industry practices, risks associated with conducting business outside the Unified States, developments relating to existing agreements, disruptions to our business relationships with Maiden Holdings, Ltd., National General Holdings Corp., ACP Re, Ltd. or third party agencies and warranty administrators, difficulties with technology or breaches in data security, heightened competition, changes in pricing environments, and changes in asset valuations. The
forward-looking statements contained in this news release are made only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statements except as may be required by law. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected, is contained in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q.
CONTACT: AmTrust Financial Services, Inc. Investor Relations Elizabeth Malone CFA firstname.lastname@example.org 646.458.7924