AmTrust Financial: Potential Double With Little Downside
Brian Grosso • 20 Comments
Brian Grosso • 20 Comments
Fri, Jun. 17, 9:14 AM| Fri, Jun. 17, 9:14 AM
Tue, Apr. 19, 9:07 AM
- “We view the proposed acquisition of ANV as a transformative transaction for AmTrust’s (NASDAQ:AFSI) Lloyd’s operation," says CEO Barry Zyskind.
- AmTrust is buying ANV Holdings from Ontario Teachers' Pension Plan for $218.7M in cash. The funding will come from working capital. Last year, ANV generated gross written premium of $508M, and its three managed syndicates reported gross written premium of $710M. The deal is expected to close in Q3.
- Source: Press Release
- Now read: My Top Insurance Stocks For 2016 (March 12)
Sep. 28, 2015, 7:49 AM
- Texas-based Republic has been around for more than 100 years, and last year reported total direct premiums of $711M. The majority of its business is written in the Southwestern U.S.
- AmTrust (NASDAQ:AFSI) is paying $233M, including $113M of cash and a $105M note issued to the seller, Delek Group (OTCPK:DGRLY), bearing interest of 5.75% with a four-year maturity. Closing is expected in 2016 H1.
Aug. 5, 2015, 10:44 AM
- N.V, Nationale Borg-Maatschappij is a 120-year old international direct writer and reinsurer of surety and trade credit insurance in over 70 countries. It generated premiums of €91M in 2014.
- AmTrust (AFSI -1.7%) is buying the company and its affiliates for €154M in cash, subject to adjustment based on Nationale Borg's TBV at closing. The deal is expected to close this year.
Sep. 15, 2014, 9:25 AM
- Tower Group (NASDAQ:TWGP) owners will receive $2.50 in cash from ACP Re (NASDAQ:AFSI) for each share of Tower they own.
- Previously: ACP Re and Tower Group get regulatory approval for merger
Sep. 15, 2014, 7:44 AM
Jun. 27, 2014, 7:06 PM
- "Various of your representatives have orally suggested to us that an unwaived Insolvency Event has or may have occurred," reads a letter from Tower Group's (TWGP) general counsel to ACP's (AFSI) CFO. An insolvency event could potentially allow ACP to pull out of its merger agreement with Tower.
- Tower insists it doesn't think any insolvency event has happened, and is requesting ACP "unequivocally assure Tower in writing of its commitment to close the Merger on the terms and conditions set forth in the merger agreement and affirm that an Insolvency Event has not occurred."
- Should ACP fail to do so by 5PM on Monday, Tower will conclude ACP doesn't plan to voluntarily go through with the deal. "Tower reserves all of its rights, positions, and remedies under the merger agreement or otherwise."
May 13, 2014, 12:54 PM
- Euroins Insurance Group has made a $3.75/share offer for Tower Group (TWGP +13.8%), subject to due diligence and "negotiation and execution of a definitive written agreement." The offer price soundly exceeds the ACP Re's (AFSI +0.1%) revised $2.50/share bid.
- Tower shares are currently at $2.55, after having momentarily spiked as high as $3.01.
May 7, 2014, 12:48 PM
- Downgrading Tower Group (TWGP -13.9%) to Underperform and halving its price target to $1.50, KBW notes an "elevated risk" of the merger with AmTrust (AFSI -1.1%) subsidiary ACP Re being restructured at a lower price (though it still expects the deal to close). At issue is the release of Tower's 2013 10-K which showed a big decline in book value to $1.67 per share at year's end from $3.62 at the end of Q3.
- The 2-day decline for Tower since the downgrade is about 21%.
- Buy the dip says Blue Ridge Buffettologist in an SA Pro article embargoed until tomorrow morning.
AmTrust Financial Services, Inc. provides insurance services. It operates through four segments: Small Commercial Business, Specialty Risk and Extended Warranty, Specialty Program Business and Personal Lines Reinsurance. The Small Commercial Business segment provides workers compensation to... More
Industry: Property & Casualty Insurance
Country: United States
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