Atlas Financial in LOI to sell American Country, American Service

Aug. 04, 2020 9:47 AM ETAtlas Financial Holdings, Inc. (AFH)By: Liz Kiesche, SA News Editor3 Comments
  • Atlas Financial Holdings (NASDAQ:AFH +4.9%) jumps 23% after entering a non-binding letter of intent to sell its indirect subsidiaries, American Country Insurance and American Service Insurance, to Buckle Corp. for up to $5.12M.
  • Anticipates closing in H2 2020.
  • The transaction includes the transfer of stock, charters and state licenses of American Country and American Service, but won't include their insured obligations, which will remain in the two units' receivership estates.
  • In connection with the anticipated Buckle transaction, the boards of American Insurance Acquisition and American Service have consented to American Country and American Service being placed into liquidation, which the company expects to happen in the near term.
  • Buckle previously acquired Gateway Insurance, which was an indirect subsidiary of AFH.
  • As previously announced, Atlas’s strategic focus includes transitioning business previously written on its wholly owned insurance subsidiaries, which are currently in rehabilitation, to alternative markets through the company’s wholly owned managing general agency, Anchor Group Management, to leverage the team, distribution systems and other resources aligned under this business unit.
  • Previously: Atlas Financial closes on Gateway sale, maps plan forward (June 17)

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