AmTrust Financial Services has agreed to acquire Comp Options Insurance Company, an affiliated company of Blue Cross & Blue Shield of Florida, 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.