US-based insurance holding firm AmTrust Financial Services has signed an agreement to acquire Wells Fargo business, Warranty Solutions, for $152m in cash.
Warranty Solutions offers service contracts and auto-related finance and insurance products to automobile dealerships in the US.
With a national network of around 70 active agencies, and 1,500 franchised and independent dealers, the company designs, markets, administers and underwrites vehicle service contracts for new and used automobiles.
AmTrust Financial Services president and CEO Barry Zyskind said: "The acquisition of Warranty Solutions provides an outstanding opportunity for our company to expand our successful vehicle extended warranty operation while also adding to our differentiated service and fee business."
Warranty Solutions comprises corporate entities, including Warranty Solutions Management, Heritage Indemnity, Westlake Insurance, Warranty Solutions Administrative Services, WS Aftermarket Services and Heritage Mechanical Breakdow.
The company will continue to operate with its existing name, leadership and team members from the Lakewood office, even after closing of the deal.
Subject to regulatory approval, the deal is expected to be completed in the third quarter of this year.
AmTrust, through its subsidiaries, provides specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage.
Image: Warranty Solutions provides service contracts and auto-related finance and insurance products to automobile dealerships. Photo: courtesy of Rosemary Ratcliff/ FreeDigitalPhotos.net.