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April 16, 2019

Liberty Mutual buys AmTrust’s global surety, credit reinsurance business

Liberty Mutual Insurance has signed a definitive agreement to purchase global surety and credit reinsurance operations of AmTrust Financial Services.

As per the terms of the agreement, Liberty Mutual will purchase four AmTrust businesses, including AmTrust Surety that offers contract, commercial, and subdivision bonds in the Western US.

It will also acquire AmTrust Insurance Spain that delivers surety bonds in Spain and Latin America; and Nationale Borg that provider worker disability, surety, and home purchase bonds in the Netherlands and Belgium.

Furthermore, Liberty Mutual will snap up Nationale Borg Reinsurance (NBRe), a surety, trade credit and political risk reinsurance provider.

Liberty Mutual Insurance said that the translations are part of its strategy to become a top three global commercial re/insurer.

Liberty Mutual president of global risk solutions Dennis Langwell said: “The transaction will further enhance our strong global surety and reinsurance expertise, market leadership, and geographic footprint.

“Once the transaction closes, we’ll integrate the acquired operations into our current structure.”

Liberty Mutual Insurance president of global surety Tim Mikolajewski said: “We believe this transaction will strengthen our best-in-class operation, allowing us to better serve our valued agents, brokers, and customers.

“The added scale and key talent aligns well with our model and goals in the U.S., and will provide a platform for broader global development through AmTrust Insurance Spain, Nationale Borg, and Nationale Borg Reinsurance.”

Skadden, Arps, Slate, Meagher & Flom serves as legal advisor to Liberty Mutual Insurance in the transaction.

Bank of America Merrill Lynch acted as financial advisor to AmTrust for the transaction, while Debevoise & Plimpton was legal counsel.

Subject to regulatory approvals and customary closing conditions, the AmTrust Surety portion of the acquisition is likely to conclude in Q2 of 2019, while the AmTrust Insurance Spain, Nationale Borg, and NBRe portion is slated to complete in the second half of 2019.

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