AmTrust Financial Services, Inc. (NASDAQ:AFSI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Entry Into a Material Definitive Agreement.
On January 30, 2019, in connection with the termination of the reinsurance agreements described under Item 1.02 below, AmTrust Financial Services, Inc. (the “Company”) and Maiden Holdings, Ltd. (“Maiden”) entered into a second amendment to the Master Agreement between the parties, originally entered into on July 3, 2007, to remove the provisions requiring the Company to reinsure business with Maiden.
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Item 1.02 |
Termination of a Material Definitive Agreement. |
On January 30, 2019, the Company, through its wholly-owned subsidiaries, AmTrust International Insurance, Ltd. (“AIIL”), AmTrust Europe Limited (“AEL”) and AmTrust International Underwriters DAC (“AIU DAC”), and Maiden, through its wholly-owned subsidiary Maiden Reinsurance Ltd. (“MRL”), agreed to terminate on a run-off basis (i) the Amended and Restated Quota Share Agreement between AIIL and MRL, originally entered into on July 1, 2007, by which AIIL retrocedes to MRL certain lines of business assumed by AIIL from certain of the Company’s U.S., Irish and U.K. insurance company subsidiaries; and (ii) the Quota Share Reinsurance Contract among AEL, AIU DAC and MRL, originally entered into on April 1, 2011, by which AEL cedes 20% and AIU DAC cedes 40% to MRL of the Company’s European medical liability business. Each termination will be effective as of January 1, 2019.
About AmTrust Financial Services, Inc. (NASDAQ:AFSI)
Amtrust Financial Services, Inc. (AmTrust) is an insurance holding company. The Company, through its subsidiaries, 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. Its segments include Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program. The Small Commercial Business segment is engaged in providing workers’ compensation, commercial package and other commercial insurance lines produced by wholesale agents, retail agents and brokers in the United States. The Specialty Risk and Extended Warranty segment is engaged in providing coverage for consumer and commercial goods and custom designed coverages. The Specialty Program segment is engaged in writing commercial insurance for defined classes of insureds through general and other wholesale agents.