AmTrust Financial Services

AmTrust Financial Services, Inc., is a New York City-based multinational property and casualty insurance company, offering workers’ compensation, general liability, business owners policies (BOP), cyber liability, EPLI and more.[2] Operating through its subsidiaries, its operations are divided into three segments: Small Commercial Business insurance, Specialty Risk and Extended Warranty insurance, and Specialty Middle-Market Property and Casualty insurance. The company's main regions of operations are North America, United Kingdom, and mainland Europe. AmTrust is rated “A-” (Excellent) by AM Best Company.[3] Barry Zyskind is the Chief Executive Officer.[4]

Not to be confused with AmTrust Bank.
AmTrust Financial Services, Inc.
Private
IndustryInsurance, Extended Warranties, Specialty Risk
Founded1998 
FounderGeorge Karfunkel
Michael Karfunkel
HeadquartersHome Insurance Plaza
New York City, USA
Area served
North America
United Kingdom
Europe
Key people
Barry Zyskind[1] (CEO)
Ronald Pipoly(CEO, 2005)
Products
OwnerStone Point Capital
Number of employees
5,723 (2019)
Websiteamtrustfinancial.com

History

AmTrust Financial Services was founded by brothers George Karfunkel and Michael Karfunkel in 1998.[5][6]

In 2005, Ronald (Ron) Pipoly was appointed as Chief Financial Officer.[7]

AmTrust began trading on the NASDAQ Global Select Market on November 13, 2006.[8]

In 2016, Barry Zyskind, Michael Karfunkel's son-in-law,[5] was appointed as Chairman in addition to existing roles as Chief Executive Officer, President and Chairman of Executive Committee.[9] Zyskind was listed by Forbes as the best performing CEO in the Insurance industry in December 2014.[10]

In 2017, Adam Karkowsky was appointed as Chief Financial Officer.[11]

In November 2018, AmTrust completed a go-private transaction, merging with Evergreen Parent, L.P., an entity formed with private equity funds managed by Stone Point Capital LLC, together with the Karfunkel-Zyskind family.[12]

In January 2019, AmTrust voluntarily delisted and deregistered all series of preferred stock and subordinated notes.[13] Adam Karkowsky became president of AmTrust in December 2019.[14]

In June 2020, The Securities and Exchange Commission (SEC) has charged AmTrust Financial Services and its former Chief Financial Officer, Ronald E. Pipoly Jr., for failure to report relevant information about how the firm measured the policy costs and assets for 2015 and previous years. AmTrust and Pipoly have committed to mandatory injunctions on potential violations of such terms and to compensate $10.3 million and $75,000 in criminal fines, respectively. Pipoly has since decided to disburse $140,000 and compensate $22,499 in tax on the discrimination.[15]

Affiliated companies and subsidiaries

Most of the company's business is contracted worldwide through more than 20 insurance companies and subsidiaries. The following are some of their US subsidiaries:[16]

  • AmTrust Insurance Company of Kansas, Inc. (AICK)
  • Associated Industries Insurance Company, Inc. (AIIC)
  • Comp Options Insurance Company (COIC)
  • Developers Surety and Indemnity Company (DSIC)
  • First Nonprofit Insurance Company (FNIC)
  • Indemnity Company of California (ICC)
  • Milwaukee Casualty Insurance Company (MCIC)
  • Republic Fire and Casualty Insurance Company (RFC)
  • Republic Lloyds (RL)
  • Republic Underwriters Insurance Company (RUIC)
  • Republic-Vanguard Insurance Company (RVIC)
  • Rochdale Insurance Company (RIC)
  • Sequoia Insurance Company (SIC)
  • Sequoia Indemnity Company (SID)
  • Security National Insurance Company (SNIC)
  • Southern County Mutual Insurance Company (SCM)
  • Southern Insurance Company (SOIC)
  • Southern Underwriters Insurance Company (SUIC)
  • Technology Insurance Company, Inc. (TIC)
  • Wesco Insurance Company (WIC)

The company's foreign insurance subsidiaries include:

  • AmTrust International Insurance Ltd. (AII)
  • AmTrust International Underwriters Designated Company Activity (DAC)
  • AmTrust Europe, Ltd. (AEL)
  • Motors Insurance Company Ltd. (MIC)

Core business segments

Small Commercial Business Insurance

The Small Commercial Business segment of AmTrust provides worker's compensation to small businesses which operate in low and medium hazard classes. Included in this class are restaurants, retail stores, physicians and other professional offices. They also offer commercial package and other property and casualty insurance products to small businesses.[4]

Specialty Program Business Insurance

This segment provides workers’ compensation, general liability, commercial auto liability, excess surplus lines insurance programs and other specialty commercial property and casualty insurance through managing general agents.[16]

Specialty Risk and Extended Warranty

This segment is engaged in providing custom designed coverages. Included are accidental damage plans and payment protection plans sold in connection with the sale of consumer and commercial goods in the United States and Europe.[16]

Recognition

AmTrust Financial Services was named as a Northcoast 99 Best Places to Work Winner for 2017.[17]

U.S. Securities and Exchange Commission Charges and Settlement

On June 17, 2020, the U.S. Securities and Exchange Commission charged AmTrust Financial Services Inc. and its former CFO Ronald E. Pipoly Jr. with failing to disclose material facts about how the company estimated its insurance losses and reserves. They have agreed to pay a combined $10.5 million to settle the SEC’s charges. Without admitting or denying the SEC’s allegations, AmTrust and Pipoly have agreed to permanent injunctions against future violations of these provisions and to pay penalties of $10.3 million and $75,000, respectively. Pipoly has also agreed to disgorge $140,000 and pay $22,499 in prejudgment interest. The settlements with AmTrust and Pipoly are subject to court approval.[18]

gollark: not really. can you explain more then?
gollark: But I think I would at least want to ask whoever found an exploit if I managed to fix it or if it's still there.
gollark: Oh well. I haven't received any vulnerability reports for osmarks.tk so I can't really say what I actually did in instances of it - probably because nobody cares more than any actual good security practice on my part - so I can't really point to historical examples of what I did.
gollark: Nobody does *not* really seem to do that.
gollark: If you find some flaw with osmarks.tk™ or something, I would want you to directly report it in a sensible way so I can patch it, and stop meddling with it if I felt you were doing too much stuff.

References
  1. "Barry Zyskind". WSJ. Archived from the original on 2018-04-08. Retrieved July 5, 2016.
  2. "AmTrust Financial Services". Fortune. Retrieved 2018-12-31.
  3. "A.M. Best Affirms Ratings of AmTrust Financial Services, Inc. and Its Subsidiaries". A.M. Best. 29 May 2015. Archived from the original on 16 August 2016. Retrieved 29 June 2016.
  4. "The World's Biggest Public Companies". Forbes. 1 May 2016. Retrieved 29 June 2016.
  5. Nathan-Kazis, Josh (April 28, 2016). "Michael Karfunkel, the Orthodox Billionaire No One Heard Of, Dies at 72". The Forward.
  6. "AmTrust Financial Services, Inc. Announces The Passing Of Founder And Chairman Michael Karfunkel". The Street. 27 April 2016. Retrieved 29 June 2016.
  7. "Amtrust Financial Services (AFSI:Consolidated Issue Listed On NASDAQ Global Select )". Bloomberg. Retrieved 30 June 2016.
  8. "2015 Annual Report" (PDF). AmTrust. 31 December 2015. Retrieved 29 June 2016.
  9. "Amtrust Financial Services: Barry D. Zyskind". Bloomberg. Retrieved 29 June 2016.
  10. Chen, Liyan (10 December 2014). "America's Best Managed Companies". Forbes. Retrieved 29 June 2016.
  11. Rapoport, Michael. "AmTrust names insider Adam Karkowsky as CFO". MarketWatch. Retrieved 2018-06-07.
  12. "AmTrust Go-Private Transaction Completed".
  13. "AmTrust Announces Quarterly Cash Dividends on Preferred Stock" (PDF).
  14. "AmTrust Promotes CFO Karkowsky to President". Insurance Journal. 2019-12-06. Retrieved 2020-01-02.
  15. "AmTrust, Ex-CFO to Pay $10.5M to Settle SEC Charges Of Improper Reporting". Insurance Journal. 18 June 2020. Retrieved 16 July 2020.
  16. "AmTrust Financial Services Inc (AFSI.O)". Reuters. Retrieved 29 June 2016.
  17. "AmTrust Financial Named as a NorthCoast 99 Best Places to Work Winner for 2017".
  18. "SEC.gov | Insurance Company and Former CFO Charged With Faulty Loss Reserves Disclosures". www.sec.gov. Retrieved 2020-06-17.
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