AmTrust Financial Services, Inc. Adds New Warranty Products and Customers with the Acquisition of TMI Solutions, LLC
NEW YORK, January 6, 2015 (GLOBE NEWSWIRE) — AmTrust Financial Services, Inc. (Nasdaq: AFSI) (the “Company” or “AmTrust”) today announced that it has acquired TMI Solutions, LLC (“TMIS”). The cash transaction is expected to be immediately accretive.
“TMIS expands the Company’s opportunities to market fee-based warranty products and services,” stated Barry Zyskind, President and Chief Executive Officer of AmTrust. “The clients that offer TMIS’s monthly, on bill, contracts for consumer electronics represent an exciting new platform for us to market our warranty products and services.”
Located in Roswell, Georgia, TMIS offers monthly billed warranty solutions for a variety of consumer electronics as well as consumer protection services. TMIS’s warranties are primarily distributed in conjunction with large telecommunication monthly customer billing services. TMIS’s established customers include Fortune 500 companies. TMIS has consistently generated attractive margins and is expected to contribute immediately to AmTrust’s bottom line.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York City, offers specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage through its primary insurance subsidiaries rated “A” (Excellent) by A.M. Best. For more information about AmTrust, visit www.amtrustgroup.com, or call AmTrust toll-free at 855.327.2223.
Forward Looking Statements
This news release contains “forward-looking statements” that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, non-receipt of expected payments from insureds or reinsurers, changes in interest rates, a downgrade in the financial strength ratings of our insurance subsidiaries, the effect of the performance of financial markets on our investment portfolio, the amounts, timing and prices of any share repurchases made by us under our share repurchase program, our estimates of the fair value of our life settlement contracts, development of claims and the effect on loss reserves, accuracy in projecting loss reserves, the cost and availability of reinsurance coverage, the effects of emerging claim and coverage issues, changes in the demand for our products, our degree of success in integrating acquired businesses, the effect of general economic conditions, state and federal legislation, regulations and regulatory investigations into industry practices, risks associated with conducting business outside the United States, developments relating to existing agreements, disruptions to our business relationships with Maiden Holdings, Ltd., National General Holding Corp., ACP Re, Ltd., or third party agencies and warranty administrators, breaches in data security or other disruptions involving our technology, heightened competition, changes in pricing environments, and changes in asset valuations. The forward-looking statements contained in this news release are made only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statements except as may be required by law. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected, is contained in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q.
CONTACT: AmTrust Financial Services, Inc.
Elizabeth Malone, CFA
Kekst & Company
Farlie Turner Announces Sale of Consumer Products Warranty Company to AmTrust Financial Services, Inc. (NASDAQ: AFSI)
FORT LAUDERDALE, Fla. (January 6, 2015) – Fort Lauderdale-based investment banking firm Farlie Turner & Co. is pleased to announce the sale of TMI Solutions, LLC and its affiliates (“TMIS”). The company, a leading provider of monthly-billed warranty solutions for a variety of consumer electronics as well as consumer protection services, was sold to AmTrust Financial Services, Inc. (NASDAQ: AFSI) on January 6, 2015. TMIS’ CEO and co-founder, Thomas J. Manger, along with co-founder Mike Sellers, will continue to lead the consumer warranty division within AFSI. Farlie Turner served as the exclusive financial advisor in the sale. Terms of the transaction were not disclosed.
“The consumer products warranty sector is a highly attractive, value-added sector characterized by recurring revenue. Tom and Mike have built an outstanding organization and bring deep industry expertise to the AmTrust organization. TMIS is well positioned to continue to generate rapid growth in the segment,” commented Steve Zuckerman, a Managing Director at Farlie Turner who led the transaction.
Based in Roswell, GA, TMIS is a specialty provider of value-added, white-label service contract and warranty solutions for consumer and technology products, inside wire maintenance and home appliances. The company’s warranty plans are marketed to end-users primarily through telecommunications, cable and utility companies. TMIS’ customer base includes Fortune 500 companies in the U.S. and Canada.
“Steve and his team worked tirelessly to facilitate a very successful outcome and provided invaluable guidance and advice throughout the process,” noted Tom Manger.
AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York City, offers specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage. For more information about AmTrust, visit www.amtrustgroup.com.
About Farlie Turner
Farlie, Turner & Co., LLC, and its affiliate Bayshore Partners, LLC, a broker-dealer registered with FINRA, provide merger and acquisition, private placement and financial advisory services to middle market companies. Please visit www.farlieturner.com for more information.
NEW YORK – AmTrust Financial Services Inc. has acquired two companies in separate transactions that give it additional capabilities in the workers’ compensation market and in fee-based warranty products and services.
Both deals were cash transactions, but terms were not disclosed. The first transaction was for Oryx Insurance Brokerage Inc., a managing general agent and wholesaler that was founded in 1996 and subsequently carved out a niche in the upstate New York construction industry. The second deal was for TMI Solutions LLC, a warranty solutions and customer service provider.
In 2014, Oryx placed about $80 million in premiums through more than 135 agencies. The majority of that business was underwritten by AmTrust, the company said in a statement.
“We are excited to be forming a closer relationship with Tom Pasquale, Oryx’s leader, and the rest of the Oryx team,” said AmTrust President and Chief Executive Officer Barry Zyskind in a statement. “For over nine years, the company has enjoyed a profitable partnership with Oryx providing workers’ compensation insurance to niche markets.”
The acquisition of TMI Solutions will expand AmTrust’s presence in the fee-based warranty products and services market. Zyskind, in a statement, said the deal gives the company “an exciting new platform” for it to market its services. TMI’s warranties are primarily distributed in conjunction with large telecommunication monthly customer billing services and the company has consistently generated attractive margins, AmTrust said.
AmTrust has demonstrated an appetite for acquisitions. Last year, it acquired Comp Options Insurance Co. Inc., a Florida-based workers’ compensation writer (Best’s News Service, Nov. 18, 2014). It also closed last year on a deal in which it acquired the renewal rights to Tower Group International Ltd.’s commercial lines businesses and bought surety
and general liability insurer Insco Dico. AmTrust in 2009 had eight insurance subsidiaries domiciled in the United States, compared with 14 at Sept. 30, according to regulatory filings.
AmTrust Group companies currently have a Best’s Financial Strength Rating of A (Excellent). On the afternoon of Jan. 6, shares of AmTrust Financial Services Inc. (NASDAQ: AFSI) were trading at $53.23, down 0.54% from the previous close.
(By Michael Buck, senior associate editor, BestWeek:
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