adjustercom.com
The Comp Examiner Directory
SLT Law_Stacey Tokunaga, Attorney At Law
Home
News

 Features


Other Claims News
People
Forums
The Comp Examiner Directory
The Liability Adjuster Directory
Service Provider Directory
Post a Job
View Jobs
Resumes
View Resumes
Contact Us

RJN Investigations

 

Michael Sullivan Associates

 

The Comp Examiner Directory

 


Welcome Guest! | Login | Register with adjustercom
 
 
News

News Main Page

Email a Friend Email A Friend

More News

April 16, 2018
Sedgwick Completes Acquisition of Cunningham Lindsey

April 13, 2018
California Division of Workers' Compensation (DWC) Posts Additional Adjustments to Official Medical Fee Schedule. (Hospital Outpatient Departments/Ambulatory Surgical Centers)

April 12, 2018
Betty Johnson, A Retired, Veteran Workers' Compensation Claims Professional Of The Los Angeles Area, Dies On April 3rd After An Illness

April 11, 2018
Former San Diego Sheriff's Deputy Gets Probation And Work Furlough For Work Comp Fraud



AmTrust Announces Plan To Go Private. Stocks Rise 25% By Yesterday, Wednesday.
By Lonce Lamonte - January 10, 2018

AmTrust Financial (NASDAQ:AFSI) rose dramatically yesterday after private equity firm Stone Point Capital and the family of Barry D. Zyskind and George and Leah Karfunkel proposed to take the company private.  By January 10th, Wednesday, less than two days after the announcement of the going-private project, the stock was up 25%. 

AmTrust, one of the largest workers’ compensation insurers in the U.S. according to market share, was founded in 1998 by the Karfunkel family of New York.  It has grown significantly in nearly 10 years via acquisitions.  The Karfunkels and AmTrust Chief Executive Barry D. Zyskind presently own 43% of the insurer’s common shares. 

Stone Point Capital, which is also presently a minority investor in Sedgwick Claims Management, now a world-wide claims service provider, plans to purchase the remaining common stocks of AmTrust.  Stone Point offered a $12.25-a-share deal, a 21% premium over AmTrust’s closing stock price on Tuesday, January 9th.  But then the share price rose to more than the offer price after the announcement. 

It would make sense for shareholders to expect more than $12.25 in a buyout transaction.  For one reason, the stock was trading upwards of $25 less than a year ago, prior to a hardship 2017 which included an announcement that the company had discovered a series of accounting errors which prompted it to recalculate and republish three years of earnings, together with other challenges. 

In March of 2017, AmTrust delayed its 2016 annual report by a few weeks in order to conduct an audit and restate financial statements for the year. They also prepared disclosures for 2014 and 2015.  The company then said it improved internal financial controls and created a chief accounting officer position. 

Over the past year, AmTrust took steps to stabilize by raising $300 million in new capital from the Zyskind family along with the sale of its personal lines policy management system to National General Holdings for $200 million.  AmTrust also intends to earn about $950 million more by selling a majority equity interest in some of its U.S. fee business to private equity firm Madison Dearborn partners. 

AmTrust lost $174.7 million in the third-quarter of 2017 as compared to earning $80.7 million in net income in the third-quarter of 2016.  The company’s combined ratio was 134.4 for the 2017 third-quarter compared to 93.4 for the 2016 third-quarter. 

Part of the reason is cited to have come from hurricanes and other weather events.   Chairman and CEO Barry Zyskind said AmTrust was focusing on raising money, improving its balance sheet, and promoting longer-term stability.  

 

lonce@adjustercom.com, Lonce Lamonte, journalist; copyright Lonce Lamonte and adjustercom.  All rights reserved.  

 
 

 Hot Jobs


Sales
Marketing Director
Work Comp Resolutions
Southern California

Attorney / Paralegal / Hearing Rep
Workers' Comp. Lien Defense/Hearing Rep.
Lien On Me, Inc.
Glendale, CA
View All Jobs


Build Your Brand

SLT Law

AN Investigations


    Copyright 2018 | Privacy Policy | Feedback |  

Web site engine's code is Copyright © 2003 by PHP-Nuke. All Rights Reserved. PHP-Nuke is Free Software released under the GNU/GPL license.