AmTrust Financial Services
| Company type | Private |
|---|---|
| Industry | Insurance |
| Founded | 1998 |
| Founder | George Karfunkel, Michael Karfunkel |
| Fate | Privatized in November 2018 |
| Headquarters | New York City , United States |
Area served | North America, United Kingdom, continental Europe |
Key people | Barry Zyskind (Chairman and CEO), Adam Karkowsky (President), Ronald E. Pipoly (former CFO) |
| Products | Property and casualty insurance, workers’ compensation, general liability, business owners policies (BOP), cyber liability, employment practices liability insurance (EPLI) |
| Owner | Karfunkel-Zyskind family, Stone Point Capital LLC (private equity funds) |
| Parent | Evergreen Parent, L.P. |
| Website | www |
AmTrust Financial Services, Inc. is a multinational insurer headquartered in New York City, specializing in property and casualty coverage. Its product portfolio encompasses workers’ compensation, general liability, business owners policies (BOP), cyber liability, employment practices liability insurance (EPLI), among others. The company operates through various subsidiaries and organizes its operations into three main divisions: small commercial business insurance, specialty risk and extended warranty insurance, and specialty middle-market property and casualty insurance. AmTrust primarily serves clients across North America, the United Kingdom, and continental Europe. It holds an “A−” (Excellent) rating from AM Best Company. Barry Zyskind functions as both chairman and CEO.
History
The inception of AmTrust Financial Services dates back to 1998 when brothers George Karfunkel and Michael Karfunkel established the firm.
Ronald E. (Ron) Pipoly assumed the role of CFO in 2005.
AmTrust's shares began trading on the NASDAQ Global Select Market as of November 13, 2006.
In 2016, Barry Zyskind—who is married to Michael Karfunkel’s daughter—was appointed chairman while continuing his duties as CEO, president, and chairman of the executive committee. Notably, Forbes recognized Zyskind as the top-performing CEO within the insurance sector in December 2014.
Adam Karkowsky joined as CFO in 2017 and advanced to president in December 2019.
The company underwent a privatization process in November 2018 by merging with Evergreen Parent, L.P., a special purpose entity backed by private equity funds managed by Stone Point Capital LLC along with the Karfunkel-Zyskind family.
In January 2019, AmTrust voluntarily removed its preferred stock series and subordinated notes from public registration and trading.
Also during January 2019, AmTrust entered into a quota share agreement with Swiss Reinsurance America Corp (“Swiss Re”), covering approximately $2.9 billion in anticipated written premiums for U.S. small commercial business; Swiss Re assumed roughly $1.05 billion across in-force policies, new business, and renewals.
On June 17, 2020, the U.S. Securities and Exchange Commission filed charges against AmTrust and former CFO Ron Pipoly related to insufficient disclosure concerning its actuarial methods for loss reserve estimations through 2015. Without admitting or denying wrongdoing, AmTrust consented to pay a $10.3 million civil fine; Pipoly agreed to penalties and disgorgement totaling $237,499 to resolve the allegations.
Affiliated companies and subsidiaries
AmTrust conducts a significant portion of its international operations via more than 20 insurance entities and subsidiaries. Principal subsidiaries based in the United States include:
Internationally, notable subsidiaries consist of:
- AmTrust Assicurazoni S.p.A.
- AmTrust International Insurance Ltd. (AII)
- AmTrust International Underwriters Designated Activity Company (DAC)
- AmTrust Europe, Ltd. (AEL)
- Motors Insurance Company Ltd. (MIC)
- Primero Seguros, S.A. de C.V.
Small Commercial Business Insurance
This division focuses on providing insurance solutions for small enterprises classified within low to medium risk categories. Its offerings include workers' compensation along with commercial package policies and property and casualty coverage. Typical clientele encompasses establishments such as restaurants, retail outlets, and professional service offices.
Specialty Program Business Insurance
This division primarily functions through managing general agents and provides a range of coverages including workers’ compensation, general liability, commercial auto liability, excess surplus lines, as well as specialized commercial property and casualty insurance.
Specialty Risk and Extended Warranty
This segment specializes in tailored insurance solutions, encompassing accidental damage protection and payment safeguard plans associated with the sale of consumer and commercial products across the United States and Europe.
Recognition
AmTrust Financial Services earned distinction as a Northcoast 99 Best Places to Work recipient in both 2017 and 2018.
U.S. Securities and Exchange Commission Charges and Settlement
On June 17, 2020, the U.S. Securities and Exchange Commission brought charges against AmTrust Financial Services, Inc. along with former CFO Ronald E. Pipoly for insufficient disclosures related to the company’s actuarial methods used to estimate loss reserves up until 2015. Without admitting or denying wrongdoing, AmTrust consented to a civil penalty of $10.3 million. Concurrently, Pipoly resolved the matter by agreeing to penalties, disgorgement, and interest amounting to $237,499.