AmTrust Financial Acquires Unitrin’s Commercial Lines Business

AmTrust Financial Services Inc. has acquired Unitrin Business Insurance from Unitrin Inc. in a cash transaction, the companies said.

Terms of the deal were not disclosed, but Unitrin (NYSE: UTR) said in a statement it is not expected to have a significant impact on its financial position.

UBI serves commercial customers in 30 states through a network of independent agents.

AmTrust (NASDAQ: AFSI) will acquire the renewal rights to the UBI book of business, while Unitrin retains pre-closing loss and loss adjustment reserves, AmTrust said in a statement.

AmTrust, based in New York City, is a multinational specialty property/casualty holding company. Chicago-based Unitrin is a financial services provider that owns companies specializes in property/casualty insurance, life and health insurance, and automobile finance products for individuals, families and small businesses.

In May, A.M. Best Co. continued the status of under review with negative implications to the Financial Strength Rating of A (Excellent) for the UBI companies -- Milwaukee Casualty Insurance Co., Security National Insurance Co., Trinity Lloyd’s Insurance Co. and Trinity Universal Insurance Company of Kansas Inc. -- pending the close of the sale to AmTrust. Best affirmed the Financial Strength Rating of A (Excellent) of the Unitrin Property and Casualty Insurance Group (BestWire, May 5, 2008).

AmTrust Financial Group members currently have Best’s Financial Strength Ratings of A- (Excellent).

Shares of AmTrust Financial were selling at $14.81 in morning trading on June 4, up 1.23% from the previous close. Shares of Unitrin Inc. were selling at $34.68, up 0.58% from the previous close.

(By Alyn Ackermann, senior associate editor, BestWeek: [email protected])