AmTrust Financial Services has agreed to acquire AmeriHealth Casualty Insurance Company from Independence Health Group for about $90m in cash.
The transaction is to be funded with existing working capital. In 2015, AmeriHealth Casualty generated gross written premium of approximately $116m. Pending regulatory approval, the transaction is expected to close during the fourth quarter of 2016.
AmTrust Financial Services chairman, president and CEO Barry Zyskind said: “We look forward to welcoming AmeriHealth Casualty to the AmTrust group of commercial property and casualty companies.
"With the addition of AmeriHealth Casualty’s operations serving small-to-medium-sized businesses and municipalities, we will expand our presence as one of the largest workers’ compensation carriers in Pennsylvania and New Jersey.
“AmeriHealth Casualty will bring a strong leadership team and solid book of business. We expect to continue to deliver a high standard of workers’ compensation coverage.”
IHG will retain CompServices (CompServices), its third party administrator for workers' compensation business. CompServices will provide TPA services to its self-insured customers as well as to AmTrust, in accordance with the terms of this transaction.
AmeriHealth Casualty provides fully insured workers’ compensation insurance operating primarily in Pennsylvania and New Jersey.