AmTrust Financial Services, Inc. AFSI closed the acquisition of N.V, Nationale Borg-Maatschappij and its affiliates (“Nationale Borg”) from Egeria and HAL Investments. The property and casualty insurer (P&C) paid $179.1 million (€161 million) in cash for the buyout.
On Aug 5, 2015, AmTrust Financial inked a deal to buy the Amsterdam-based company. The initial purchase price was $171.3 million (€154 million), which was subject to Nationale Borg’s tangible book value at the time of closing.
Nationale Borg has a long and successful track record as an international direct writer and reinsurer of surety and trade credit insurance. The acquired company has operations in more than 70 countries and generated premiums worth $104.6 million (€94 million) over the trailing 12 months.
The acquisition will enable AmTrust Financial to lay its foundation as an ace surety and trade credit insurance operation. AmTrust Financial, which already has a thriving international and domestic surety insurance business, expects the takeover to add substantial capabilities.
The acquisition will not only help AmTrust Financial to become a highly competitive global surety business, but also extend its operations beyond the 44 countries where it currently operates. The deal is expected to result in the creation of a profitable and expandable operation in the niche market for surety and trade credit insurance.
Zacks Rank and Stocks to Consider
Currently, AmTrust Financial carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Cincinnati Financial Corp. CINF, Markel Corp. MKL and NMI Holdings, Inc. NMIH. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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