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LONDON, UK / ACCESSWIRE / March 05, 2018 / Active-Investors.com has just released a free research report on AmTrust Financial Services, Inc. (NASDAQ: AFSI) ("AmTrust"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AFSI as the Company's latest news hit the wire. On March 01, 2018, the Company announced that it has signed an agreement with Evergreen Parent, L.P. to acquire 45% of the Company's issued and outstanding common shares that are not already owned by Karfunkel-Zyskind Family including its affiliates and related parties. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for ProAssurance Corporation (NYSE: PRA), which also belongs to the Financial sector as the Company AmTrust Financial Services. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, AmTrust Financial Services most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=AFSI

Evergreen Parent is an entity formed entirely for the acquisition of AmTrust by private equity funds managed by Stone Point Capital LLC, Barry D. Zyskind, Chairman and CEO of AmTrust, George Karfunkel and Leah Karfunkel (the Karfunkel-Zyskind Family). The deal values the Company's fully diluted equity at approximately $2.7 billion. The value does not include the value of the Company's preferred shares.

The deal

In January 2018, Stone Point and the Karfunkel-Zyskind Family had announced the acquisition of all outstanding shares of AmTrust, which the Karfunkel-Zyskind Family did not already own or control. They agreed to pay $12.25 in cash for each AmTrust's share. The deal was aimed at taking the company private.

As per the terms of the current agreement, Evergreen Parent has made a higher offer and has agreed to pay $13.50 in cash for each AmTrust's share to the AmTrust's shareholders not affiliated with the Karfunkel-Zyskind Family. The recent offer is at a 33% premium of the price of AmTrust's share at the closing on January 09, 2018, the last trading day before the Stone Point and the Karfunkel-Zyskind Family had shared their proposal.

As part of the agreement, the Karfunkel-Zyskind Family and its affiliates and related parties have agreed to transfer their holdings in AmTrust in exchange for stake in Evergreen Parent. The agreement provides for AmTrust's preferred shares to continue to be listed on the NYSE (New York Stock Exchange) even after the completion of the transaction.

The deal is expected to close in H2 2018 subject to shareholders and regulatory approval and other closing conditions. The deal requires majority approval from shareholders of AmTrust who are not associated with the Karfunkel-Zyskind Family, their children, senior management or their respective affiliates, and certain related parties. The Company plans to file the detailed copy of the agreement with the US Securities and Exchange Commission (SEC) soon.

The deal has been approved by the Board of Directors of AmTrust after the Special Committee set up by the Company's Board approved the deal. The members of the Special Committee included independent directors not affiliated with the Karfunkel-Zyskind Family and gave their recommendation after consulting their own financial and legal advisors. The Board as well as the Special Committee of AmTrust have recommended that the Company's shareholders should vote in favor of the deal.

Management Quotes

Commenting on the deal, Barry Zyskind said:'

"I believe that this transaction represents an exciting step forward for AmTrust, our employees, and the agents, brokers, partners, and customers we serve. As a private enterprise, we will be able to focus on long-term decisions, without the emphasis on short-term results."

Jim Carey, Senior Principal of Stone Point Capital, added:

"Stone Point is excited to be partnering with the Karfunkel-Zyskind family and AmTrust's management team in the next phase of AmTrust's growth."

Don DeCarlo, Chairman of the Special Committee at AmTrust, commented:

"We believe the proposal delivers immediate and certain value for public shareholders at a significant premium to the unaffected share price and we encourage public shareholders to support the transaction."

Backdrop

AmTrust's shares took a major tumble last year when the Company had delayed the filing of its FY16 annual report and later re-stated its financial statements for FY16, FY15, and FY14. The restatement resulted in the downward revision of the pre-tax profits claimed by the Company.

The Company then initiated several steps in FY17 to stabilize itself and improve its financials. Some of the steps included the injection of $300 million as fresh capital from the Zyskind family, divestment of its US-based fee businesses including managing general agencies and warranty third-party administrators to private equity firm Madison Dearborn Partners for $950 million in November 2017, sale of its personal lines policy management system to National General Holdings Corp. for $200 million in September 2017, etc.

About Stone Point Capital LLC

Greenwich, Connecticut-based Stone Point Capital is a leading private equity firm, investing in businesses within the global financial services industry. The firm has raised and managed seven private equity funds ? the Trident Funds ? with aggregate committed capital of approximately $19 billion. The Firm has deep domain expertise and a network of relationships in 12 verticals, over 60 sub-sectors, and 100+ companies to date.

About AmTrust Financial Services, Inc.

New York-based AmTrust is a multinational property and casualty insurer specializing in coverage for small to mid-sized businesses. Its insurance products include workers' compensation, commercial automobile, general liability and extended service, and warranty coverage through its primary insurance subsidiaries. The Company has presence in over 70 countries and is supported by a team of 7,000 employees and 9,500 agents across the globe.

Stock Performance Snapshot

March 02, 2018 - At Friday's closing bell, AmTrust's stock fell 1.07%, ending the trading session at $12.93.

Volume traded for the day: 7.07 million shares, which was above the 3-month average volume of 1.71 million shares.

Stock performance in the last three-month ? up 32.75%; previous six-month period ? up 2.38%; and year-to-date - up 28.40%

After last Friday's close, AmTrust's market cap was at $2.56 billion.

The stock has a dividend yield of 5.26%.

The stock is part of the Financial sector, categorized under the Property & Casualty Insurance industry. This sector was up 0.3% at the end of the session.

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