NEW YORK, June 26, 2014 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) ("the Company") announced today that it has agreed to acquire Comp Options Insurance Company, Inc. ("OptaComp"), an affiliated company of Blue Cross & Blue Shield of Florida ("Florida Blue"), for cash. The transaction is expected to close in the fall of 2014.
"We are excited to have OptaComp join our organization. We believe this proposed purchase will add value to AmTrust and its shareholders," said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. "We are excited about the synergies we expect to gain given OptaComp's complimentary target market of low-hazard workers' compensation insurance risks. We also look forward to assessing opportunities to continue working with Florida Blue, the health insurance market leader in Florida, on access to its extensive sales network and innovative approaches to medical cost management."
OptaComp is a Florida based, workers' compensation insurer. During the past 12 months, OptaComp generated approximately $60 million in workers' compensation insurance premium in the state of Florida. OptaComp's marketing approach is similar to AmTrust's, targeting small businesses that have a low-hazard risk profile. OptaComp's products are marketed through a network of independent agents.
Florida Blue's financial advisor in the transaction is Sandler O'Neill + Partners, L.P. and its legal advisor is DLA Piper.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., headquartered in New York City, is a multinational insurance holding company, which, through its insurance carriers, offers specialty property and casualty insurance products, including workers' compensation, commercial automobile and general liability; extended service and warranty coverage. For more information about AmTrust, visit www.amtrustgroup.com, or call AmTrust toll-free at 866.203.3037.
Forward-Looking Statements
This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, non-receipt of expected payments from insureds or reinsurers, changes in interest rates, a downgrade in the financial strength ratings of our insurance subsidiaries, the effect of the performance of financial markets on our investment portfolio, our estimates of the fair value of our life settlement contracts, development of claims and the effect on loss reserves, accuracy in projecting loss reserves, the cost and availability of reinsurance coverage, the effects of emerging claim and coverage issues, changes in the demand for our products, our degree of success in integrating acquired businesses, the effect of general economic conditions, state and federal legislation, regulations and regulatory investigations into industry practices, risks associated with conducting business outside the United States, developments relating to existing agreements, disruptions to our business relationships with Maiden Holdings, Ltd., National General Holding Corp., or third party agencies and warranty administrators, breaches in data security or other disruptions involving our technology, heightened competition, changes in pricing environments, and changes in asset valuations. The forward-looking statements contained in this news release are made only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statements except as may be required by law. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected, is contained in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q.
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