Profile: AmTrust Financial Services Inc (AFSI.OQ)
25 Nov 2015
Amtrust Financial Services, Inc. (AmTrust), incorporated on November 7, 1990, is an insurance holding company. Through its wholly owned subsidiaries, the Company provides specialty property and casualty insurance focusing on workers’ compensation and commercial package coverage for small business, specialty risk and extended warranty coverage, and property and casualty coverage for middle market business. The Company also provides reinsurance, primarily on personal and commercial automotive business. The Company operates through three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program.
The Company transacts its business through 15 insurance subsidiaries domiciled in the United States and five insurance subsidiaries domiciled in Europe. The Company's 15 domestic insurance subsidiaries are AmTrust Insurance Company of Kansas, Inc. (AICK), Associated Industries Insurance Company, Inc. (AIIC), AmTrust Lloyd’s Insurance Company of Texas (ALIC), Comp Options Insurance Company (COIC), Developers Surety and Indemnity Company (DSIC), First Atlantic Title Insurance Corp. (FATIC), First Nonprofit Insurance Company (FNIC), Indemnity Company of California (ICC), Milwaukee Casualty Insurance Co. (MCIC), Rochdale Insurance Company (RIC), Sequoia Insurance Company (SIC), Sequoia Indemnity Company (SID), Security National Insurance Company (SNIC), Technology Insurance Company, Inc, (TIC) and Wesco Insurance Company (WIC). The Company's five primary foreign insurance subsidiaries are AmTrust International Insurance Ltd. (AII), AmTrust International Underwriters Limited (AIU), AmTrust Europe, Ltd. (AEL), Motors Insurance Company Ltd. (MIC) and AmTrust at Lloyd's (Syndicate 1206) (ATL).
Small Commercial Business
Small Commercial Business segment provides workers’ compensation to small businesses that operate in low and medium hazard classes and commercial package and other property and casualty insurance products to small businesses, with average annual premiums of approximately $8,211. 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 9,400 select retail and wholesale agents who are paid commissions based on the annual policy premiums written. Workers’ compensation insurance provides coverage for the statutory obligations of employers to pay medical care expenses and lost wages for employees who are injured in the course of their employment. Commercial package products provide an array 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, 2014, its Small Commercial Business property and casualty claims were approximately 60% automobile and 9% property and inland marine with the remaining 31% 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 and consumer appliances; commercial equipment, and recreational vehicle and power sports. 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, Canada, Europe and Asia. The Company 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 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. Its products and underwriting criteria often entail customized coverage, loss control and claims services as well as risk sharing mechanisms. The coverage is offered through accounts with various agents to multiple insureds. Policyholders in this segment include industries, such as public entities, retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, habitational and professional employer organizations. As of December 31, 2014, the Company underwrote 119 programs through 47 independent wholesale and managing general agents.
AmTrust Financial Services Inc
59 Maiden Ln Fl 43
NEW YORK NY 10038-4639