AmTrust Financial Services has teamed up with funds managed by Blackstone Credit & Insurance to spin off certain AmTrust managing general agencies (MGAs) and fee businesses in the UK, US and Continental Europe into a new, independent entity.
The move will see AmTrust and the new company sign a ten-year capacity agreement, with AmTrust continuing as the underwriter for the existing books of business provided through the MGAs.
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The spin-off will encompass seven AmTrust subsidiaries: Abacus, AmTrust Nordic, ANV, Arc Legal, Collegiate, Qualis and Risico.
These businesses offer risk and insurance coverages including cyber excess and surplus, transaction risk insurance, and directors and officers.
Adam Karkowsky, currently serving as AmTrust president, will become the chairman and CEO of the newly formed company, which is expected to employ more than 700 individuals.
AmTrust chairman and CEO Barry Zyskind said: “With this transaction, these businesses will be positioned to further invest in their operations, meaningfully grow their portfolio and continue to deliver outstanding service to their clients.
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By GlobalData“With our significant retained equity interest, AmTrust looks forward to participating in the future success of the new company. I am confident in the strength and experience of Adam and the leadership team to drive the new company to great heights.”
Supporting Karkowsky in the executive leadership of the new company will be Joseph Brecher, currently AmTrust SVP, head of Alternative Investments, who will take on the role of chief financial officer.
Jacob Decter, presently chief strategy officer, Global Fee Businesses at AmTrust, will be appointed as chief operating officer.
While the new company’s brand name is yet to be announced, the transaction is expected to conclude by the end of 2025, pending customary closing conditions and regulatory approvals.
Post-transaction, AmTrust will continue to operate as a multinational insurance company, with roughly 6,000 employees delivering risk and insurance solutions globally.
