Profile: AmTrust Financial Services Inc (AFSI.OQ)
26 May 2015
Amtrust Financial Services, Inc. (AmTrust), incorporated on November 7, 1990, is a provider of property and casualty insurance. The Company operates in four business segments: small commercial business, Specialty Risk and Extended Warranty, specialty program and personal lines reinsurance. The Company transacts business through its insurance company subsidiaries: Technology Insurance Company, Inc. (TIC), Rochdale Insurance Company (RIC), Wesco Insurance Company (WIC), Associated Industries Insurance Company, Inc. (AIIC), Milwaukee Casualty Insurance Company (MCIC), Security National Insurance Company (SNIC), AmTrust Insurance Company of Kansas, Inc. (AICK), AmTrust Lloyd’s Insurance Company of Texas (ALIC), Oryx Insurance Brokerage, Inc and TMI Solutions, LLC.
Small Commercial Business
Small Commercial Business segment provides workers’ compensation to small businesses that operate in low and medium hazard classes, such as restaurants, retail stores, physicians and other professional offices, and commercial package and other property and casualty insurance products to small businesses. The Company is authorized to write its Small Commercial Business products in all 50 states. The Company distributes its policies through a network of over 8,100 select retail and wholesale agents who are paid commissions based on the annual policy premiums written. Commercial package products provide a range of insurance to small businesses, including commercial property, general liability, inland marine, automobile, workers’ compensation, and umbrella coverage.
The Company maintains Small Commercial Business property and casualty claims operations in several of its domestic offices and the commercial package claims operation is separated into four processing units: casualty, property, cost-containment/recovery and a fast-track physical damage unit. As of December 31, 2013, its Small Commercial Business property and casualty claims were approximately 54% automobile and 6% property and inland marine with the remaining 40% involving general liability and umbrella losses.
Specialty Risk and Extended Warranty
The Company’s Specialty Risk and Extended Warranty segment provides coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods in the United States and Europe, and certain niche property, casualty and specialty liability risks in the United States and Europe, including general liability, employers’ liability and professional and medical liability. Specialty risk business covers legal expenses in the event of unsuccessful litigation; property damage for residential properties; home emergency repairs caused by incidents affecting systems, such as plumbing, wiring or central heating; latent defects that materialize on real property after building or completion; payment protection to insureds if they become unable to meet financial obligations under finance contracts; guaranteed asset protection (GAP) to cover the difference between an insurer’s settlement and the asset value in the event of a total loss, and general liability, employers’ liability, public liability, negligence of advisors and liability of health care providers and medical facilities.
The Company's extended warranty business covers selected consumer and commercial goods and other risks, including personal computers; consumer electronics, such as televisions and home theater components; consumer appliances, such as refrigerators and washing machines; automobiles (excluding liability coverage); furniture, and heavy equipment. The Company also serves as a third party administrator to provide claims handling and call center services to the consumer products and automotive industries in the United States and Canada. It underwrites the specialty risk coverage on a coverage plan-level basis, which involves substantial data collection and actuarial analysis, as well as analysis of applicable laws governing policy coverage language and exclusions.
The Company’s Specialty Program segment provides workers’ compensation, package products, general liability, commercial auto liability, excess and surplus lines programs and other specialty commercial property and casualty insurance to a narrowly defined, homogeneous group of small and middle market companies. The type of risk covered by this segment is similar to the type of risk in Small Commercial Business but also covers, to a small extent, certain higher risk businesses. The coverage is offered through accounts with various agents to multiple insureds. Policyholders in this segment include industries, such as retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, habitational and professional employer organizations. As of December 31, 2013, the Company underwrote 103 programs through 43 independent wholesale and managing general agents.
Personal Lines Reinsurance
Personal Lines Reinsurance is related to an agreement whereby the Company reinsured 10% of National General Holdings Corp.’s consumer property and casualty business pursuant to the Personal Lines Quota Share with NGHC’s personal lines insurance companies. The Personal Lines Quota Share provides the reinsurers, in accordance with their participation percentages. The company assumed 66 million dollar of business from the NGHC Insurers during the year ended December 31, 2013.
AmTrust Financial Services Inc
59 Maiden Ln Fl 43
NEW YORK NY 10038-4639