AmTrust Financial Services and Blackstone Credit have announced a definitive agreement under which AmTrust and funds managed by Blackstone will partner in the spin-off of certain of AmTrust’s managing general agencies and fee businesses in the US, UK and Continental Europe into a new, independent company.
AmTrust and the newly formed company will enter into a 10-year capacity agreement through which AmTrust will remain underwriter of the existing books of business offered through the managing general agencies.
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The agreement includes seven AmTrust subsidiaries: ANV, Risico, Collegiate, AmTrust Nordic, Arc Legal, Qualis, and Abacus.
Adam Karkowsky, the current president of AmTrust, will leave to become chairman and chief executive of the new company, which will operate under a new brand name to be announced at a later date.
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“We are very pleased to partner with Blackstone to unlock the substantial embedded value that we have built in our global managing general agencies and fee businesses,” said Barry Zyskind, chairman and chief executive of AmTrust.
“With this transaction, these businesses will be positioned to further invest in their operations, meaningfully grow their portfolio, and continue to deliver outstanding service to their clients.”
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