AmTrust Financial Services and Blackstone Credit are partnering to spin off a portfolio of AmTrust’s managing general agencies and fee businesses across the US, UK, and Continental Europe into a new, autonomous company. The definitive agreement, announced today, positions the businesses for accelerated growth and investment.
This strategic transaction unlocks value from AmTrust’s MGA and fee businesses, allowing them to operate with increased focus and agility while maintaining a strong underwriting relationship with AmTrust. The move impacts clients and stakeholders of the seven subsidiaries involved – ANV, Risico, Collegiate, AmTrust nordic, Arc Legal, Qualis, and Abacus – and sets the stage for a new, branded entity led by a familiar face.Under the terms of the agreement, AmTrust and the new company will enter a 10-year capacity agreement, ensuring AmTrust continues as the underwriter for existing business generated through the spun-off agencies. Adam Karkowsky, currently president of AmTrust, will transition to become chairman and chief executive of the new company.
“We are very pleased to partner with Blackstone to unlock the significant embedded value that we have built in our global managing general agencies and fee businesses,” said Barry Zyskind, chairman and chief executive of AmTrust. “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.”
The new company’s brand name will be revealed at a later date.