AmTrust Financial Services, Inc. Natural Catastrophe Loss Estimate
October 03 2017 - 5:30PM
AmTrust Financial Services, Inc. (Nasdaq:AFSI)
(the “Company” or “AmTrust”) today announced an
initial estimate for net loss exposure for third quarter of 2017
catastrophe activity of between $40 million and $65 million.
AmTrust’s excess of loss reinsurance programs as
of July 1, 2017, provide catastrophe coverage for losses in excess
of $20 million, with a per event limit of $830 million. As
previously announced, AmTrust entered a new quota share reinsurance
contract effective August 1, 2017, to further reduce net exposure
to catastrophe and non-catastrophe events related to the business
of its Republic Companies, Inc. (“Republic”) subsidiary. The quota
share contract has a cession rate of 62.5% covering the personal
property policies of Republic.
The majority of AmTrust’s estimated losses from
Hurricane Harvey, Hurricane Irma, Hurricane Maria and the recent
earthquake in Mexico were related to contracts bound by AmTrust at
Lloyd’s, which has multi-event catastrophe coverage for losses in
excess of $10 million per event.
“At this time, our thoughts and prayers are with
all those rebuilding after these recent catastrophes. Although
property represents a small portion of our overall portfolio,
AmTrust had exposure to the recent events in the United States,
Caribbean and Mexico either through Republic or our operations at
Lloyd’s of London,” said Barry Zyskind, Chairman and Chief
Executive Officer, AmTrust. “Our net exposure to these events is
limited given our reinsurance and quota share programs and the
Company’s limited appetite for catastrophe risk. We are working
diligently to process all claims as quickly as possible and meet
our obligations to our policyholders and are also giving back to
the communities we serve to support the rebuilding efforts.”
About AmTrust Financial Services,
Inc.
AmTrust Financial Services, Inc., a
multinational insurance holding company headquartered in New York
City, offers specialty property and casualty insurance products,
including workers' compensation, commercial automobile, general
liability and extended service and warranty coverage through its
primary insurance subsidiaries rated "A" (Excellent) by A.M. Best.
AmTrust is included in the Fortune 500 list of largest companies.
For more information about AmTrust visit
www.amtrustfinancial.com.
Forward-Looking Statements
This news release contains certain
forward-looking statements that are intended to be covered by the
safe harbors created by the Private Securities Litigation Reform
Act of 1995. When we use words such as “anticipate,” “intend,”
“plan,” “believe,” “estimate,” “expect,” or similar expressions, we
do so to identify forward-looking statements. Examples of
forward-looking statements include the plans and objectives of
management for future operations, including those relating to
future growth of our business activities and availability of funds,
projections of the impact of potential errors or misstatements in
our financial statements, and estimates of the impact of material
weaknesses in our internal control over financial reporting, and
are based on current expectations that involve assumptions that are
difficult or impossible to predict accurately and many of which are
beyond our control. Actual results may differ materially from those
expressed or implied in these statements as a result of significant
risks and uncertainties, including, but not limited to, non-receipt
of expected payments from insureds or reinsurers, changes in
interest rates, a downgrade in the financial strength ratings of
our insurance subsidiaries, the effect of the performance of
financial markets on our investment portfolio, the amounts, timing
and prices of any share repurchases made by us under our share
repurchase program, development of claims and the effect on loss
reserves, accuracy in projecting loss reserves, the cost and
availability of reinsurance coverage, the effects of emerging claim
and coverage issues, changes in the demand for our products, our
degree of success in integrating acquired businesses, the effect of
general economic conditions, state and federal legislation,
regulations and regulatory investigations into industry practices,
the impact of known or potential errors or misstatements in our
financial statements, our ability to timely and effectively
remediate the material weaknesses in our internal control over
financial reporting and implement effective internal control over
financial reporting and disclosure controls and procedures in the
future, risks associated with conducting business outside the
United States, the impact of Brexit, developments relating to
existing agreements, disruptions to our business relationships with
Maiden Holdings, Ltd. or National General Holdings Corp., breaches
in data security or other disruptions with our technology,
heightened competition, changes in pricing environments, and
changes in asset valuations. Additional information about these
risks and uncertainties, as well as others that may cause actual
results to differ materially from those projected, is contained in
our filings with the SEC, including our Annual Report on Form 10-K
and our quarterly reports on Form 10-Q. The projections and
statements in this news release speak only as of the date of this
release and we undertake no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
For more information, please
contact:
AmTrust Financial Services,
Inc.Chaya CooperbergChief Communications Officer & SVP
Corporate Affairschaya.cooperberg@amtrustgroup.com646.458.3332
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