AmTrust Financial Services has signed an agreement with Delek Group and Republic Insurance Holdings to acquire Republic Companies, for around $233m.

The deal will include the payment of $113m in upfront cash and a $105m note issued by AmTrust to Delek bearing annual interest of 5.75% with a four-year maturity. The cash payments will be completed by AmTrust in five years.

Based in Texas, Republic provides property and casualty insurance services for its customers. It reported total direct premiums of around $711m in 2014.

The firm, which has majority business in the Southwestern states, also generates fee revenue through offering insurance services to third parties.

AmTrust Financial Services president and CEO Barry Zyskind said: "Republic is an excellent addition to our Company’s property/casualty and service and fees businesses.

"The combination of Republic’s well-established business and brand with AmTrust’s efficient operating platform and strong balance sheet offers great opportunities for profitable growth especially in Republic’s key Southwestern markets."

Subject to regulatory approval, the deal is expected to complete during the first half of 2016.

Amtrust has also completed the acquisition of Wells Fargo business, Warranty Solutions, for around $158m in cash, which offers vehicle service contracts and auto-related finance and insurance products to automobile dealerships in the US.

The firm, through its subsidiaries, provides specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage.