NEW YORK, Sept. 27, 2015 (GLOBE NEWSWIRE) — AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the “Company” or “AmTrust”) today announced that it has entered into an agreement to acquire Republic Companies, Inc and its affiliates (“Republic”) from Delek Group Ltd. (TASE:DLEKG), and Republic Insurance Holdings, LLC., for approximately $233 million, which is subject to purchase price adjustments. The purchase price will be a combination of $113 million in upfront cash, a $105 million note issued by AmTrust to Delek Group Ltd bearing annual interest of 5.75% with a four year maturity and cash payments to be made over five years. Pending regulatory approval, the parties anticipate closing will occur during the first half of 2016.
Texas based Republic has been providing property/casualty insurance for over 100 years. In 2014, Republic reported total direct premiums of approximately $711 million. The majority of the business is written in the Southwestern states. In addition, Republic generates fee revenue by providing insurance services to third parties.
“Republic is an excellent addition to our Company’s property/casualty and service and fees businesses. The combination of Republic’s well-established business and brand with AmTrust’s efficient operating platform and strong balance sheet offers great opportunities for profitable growth especially in Republic’s key Southwestern markets,” said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. ”We look forward to Republic’s seasoned team of managers and employees contributing to the success of our Company and to the benefit of our shareholders, agents and customers.”
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.
About Republic Companies, Inc.
Republic through a group of insurance companies and related entities provides personal and commercial property/casualty insurance products. In its Independent Agents segments, Republic distributes these products to individuals and small to medium-size businesses through a network of independent agents primarily in Texas, Louisiana, Oklahoma, Arkansas, Mississippi and New Mexico. In its Program Management and Insurance Services segments, Republic capitalizes on its unique combination of charters and licenses to develop and manage target-niche insurance products that are distributed through managing general agents in many additional states.
Forward-Looking Statements
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