AmTrust Financial Services Inc. (AFSI: Quote) said Wednesday it has acquired First Nonprofit Companies Inc., or FNC.
In addition, the company has agreed to acquire Mutual Insurers Holding Co., or MIHC, following the completion of the conversion of MIHC to a stock company from a mutual holding company. The deal is subject to regulatory and policyholder approval.
MIHC is the parent of First Nonprofit Insurance Co. During the 12 months following the completion of the transactions, the Company expects the acquisitions to contribute $0.12 to $0.14 per diluted share.
FNC serves approximately 1,500 nonprofit and government entities. FNC offers unique services as well as insurance programs underwritten by FNIC which are designed to allow nonprofit and government entities to economically manage their unemployment tax obligations.
"We believe the acquisitions will be accretive to earnings and advance our strategy of focusing on niche, low hazard business. FNC adds to our growing fee income while the proposed acquisition of MIHC and MIHC's subsidiary FNIC provides the Company with insurance capabilities targeted to the nonprofit market...," said AmTrust CEO, Barry Zyskind.
by RTT Staff Writer
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