US-based insurance firm AmTrust Financial Services has signed an agreement to acquire ARI Mutual Insurance, for an undisclosed sum.
AmTrust has also signed a quota-share reinsurance agreement with ARI, which is the first step in the process of completing the deal.
AmTrust Financial Services president and CEO Barry Zyskind said: "We are pleased to welcome and support ARI’s well-established commercial insurance products and distribution into AmTrust and look forward to the completion of the pending transaction.
"Profitably leveraging the industry knowledge and product expertise of ARI’s management supports our strategy of building shareholder value through accretive acquisitions."
Based in Newtown of Pennsylvania, ARI is said to be one of the top ten writers of commercial automobile insurance in New Jersey.
The company wrote around $58m in premiums during 2014, including majority of premiums in New Jersey.
Subject to regulatory and policyholder approval, the deal is expected to be completed in fall this year.
AmTrust, through its subsidiaries, provides property and casualty insurance products such as workers’ compensation, commercial automobile, general liability and extended service and warranty.