Strategic Growth. Enduring Trust.

Transcription

1 Strategic Growth. Enduring Trust.

2 A Balanced Portfolio for Lasting Success Founded in 1998, AmTrust Financial Services, Inc. was created to provide insurance products to small businesses. Through smart acquisitions, strategic investment and steady progress, we have grown to become a multinational property and casualty insurer specializing in coverage for small- to mid-sized businesses. At AmTrust, we credit much of our success to the diversity of our underwriting portfolio. Featuring a balanced mix of business lines, our portfolio endures by maintaining strong retention rates and benefiting from both lower pricing pressures and volatility. Our unified portfolio of products includes: Multiline Small Business Insurance Program Business Insurance Specialty Risk and Extended Warranty

3 A Strategy for Stability AmTrust has never been a company focused on quick returns. That s why our balanced business model is focused on generating steady, stable and positive growth. We take a disciplined, conservative and opportunistic path to achieving long-term, sustained profitability. In addition to our proven, reliable results, we ve been recognized for our financial stability with an A (Excellent) rating from A.M. Best. As such, our clients can always be assured that they re working with one of the most financially secure insurance providers in the market. An Essential Capability As a proven industry leader, AmTrust has earned a reputation as an innovative, technology-driven provider of trusted insurance products. By integrating information technology (IT) and proprietary online business submission software into the decision-making process, our IT department continues to fuel and facilitate growth while supporting an extraordinarily efficient operating environment. A Continuous Commitment to Excellence Our commitment to excellent customer service is the foundation of our products and capabilities. In fact, our experienced, reliable staff of expert underwriters and salespeople remains steadfastly dedicated to treating our agents and policyholders with the individual attention they deserve, regardless of the size of their businesses. Multiline Small Business At AmTrust, we have crafted our commercial package insurance offering to provide coverage for a variety of small businesses, including lumber, restaurants, automotive service centers, financial institutions and many more. We understand that every industry has a unique set of risks and differentiators, and we deliver custom coverage to provide the best insurance possible for each targeted industry. Program Business At its core, our program business provides risk-funding arrangements to a small group of targeted program business clients, each dedicated to the long-term proposition of shared risk and shared rewards. The risks to which these policyholders are exposed require in-depth knowledge of the industry segments in which they operate. Underwriting often entails customized coverage, loss control and claims services, as well as risk-sharing mechanisms. Our underwriting expertise is the core competency of this specialized business unit. We partner with MGAs and claims administrators to originate and manage this book of business. We target sophisticated small- and middle-market businesses, such as retail and wholesale operations, service operations and non-profit organizations. The coverage we offer consists primarily of workers compensation, general liability, commercial auto liability and property insurance. Specialty Risk and Extended Warranty Our specialty risk and extended warranty business segment serves manufacturers, retailers and third-party warranty administrators around the world from offices in Asia, Bermuda, Europe, North America and South America. Our extended warranty coverage focuses on automotive and consumer product clients, offering accidental damage, mechanical breakdown and related risks, while our specialty risk coverage targets the categories of consumer and commercial goods, auto and financial product sectors. By serving as both an underwriter and third-party administrator of warranty programs including our own full-service, state-of-the-art call center we are uniquely positioned to simplify the purchasing process and help protect the integrity of our clients brands. We continue to target low- to medium-hazard businesses throughout the United States that are generally underserved by larger insurance carriers. We work with a network of independent insurance agents who rely on AmTrust to reduce, mitigate and transfer risk.

4 Diversified Portfolio Gross Written Premium Specialty Risk and Extended Warranty Small Commercial Business Specialty Program Personal Lines Reinsurance Participation terminated 8/1/13 5% 4% 2.6% 18% 21% 21.1% 49% 41% 36.3% 28% 34% 40% 2013 $2.2 billion $2.7 billion $4.1 billion Company Highlights: 3,200 associates *Note: Statistics provided are for the year ending 12/31/13. Financial Highlights: Operating return on equity 21.3% Net loss ratio 67.0% Net expense ratio 23.5% Net combined ratio 90.5% $11.3 billion in assets $4.1 billion in gross written premium $264.6 million in operating earnings Diversified Portfolio Gross Written Premium 2013 Net Expense Ratio 2013 Net Loss Ratio Net Expense Ratio Net Loss Ratio ,037 1, , Gross Written Premium $ in Billions Net Earned Premium $ in Millions Operating Earnings $ in Millions Net Combined Ratio Percent

5 Trust that Endures 1998 AmTrust s current majority shareholders established AmTrust Financial Services, Inc. and acquired Wang Laboratories computer warranty business, including Technology Insurance Company, writing $10 million in premiums the first year AmTrust hired small business workers compensation underwriting team. AmTrust acquired Rochdale Insurance Company and the AmTrust International business AmTrust acquired renewal rights for The Princeton Agency and gained access to its distribution network and established book of small employer workers compensation business based primarily in the Northeast. AmTrust acquired AmTrust International Underwriters AmTrust hired specialty risk and extended warranty insurance team in London. AmTrust acquired renewal rights for The Covenant Group, including access to its distribution network and its established book of small employer workers compensation business based primarily in the South AmTrust acquired access to the distribution network and renewal rights to Associated Industries established book of small employer workers compensation business in Florida AmTrust entered into the specialty middle market property and casualty business through the renewal rights acquisition of Alea AmTrust raised $166 million through private placement of common stock. The company became publicly traded and began trading on the NASDAQ Global Market under the symbol AFSI AmTrust acquired renewal rights for Muirfield, a small employer workers compensation business based primarily in the Midwest. AmTrust acquired Wesco Insurance Company, which is licensed in all 50 states AmTrust acquired IGI Group, Ltd., a specialty risk insurer based in the United Kingdom. AmTrust entered into a three-year quota-share reinsurance agreement with Maiden Insurance Company and renewed for another three years in. AmTrust acquired Associated Industries Insurance Services and its wholly owned subsidiary Associated Industries Insurance Company AmTrust acquired Unitrin Business Insurance, a small commercial package business provider. AmTrust entered into a strategic agreement with Cardinal Comp for enhanced workers compensation opportunities in New York AmTrust acquired renewal rights for CyberComp, a bind-online workers compensation business from Swiss Re. AmTrust acquired Warrantech, a Texasbased developer, marketer and third-party administrator of service contracts and aftermarket warranty products. AmTrust entered into strategic investment with American Capital Acquisition Corporation (ACAC) in connection with ACAC s acquisition of GMAC s U.S. consumer property and casualty insurance business. AmTrust further expanded its geographic reach in the United States by acquiring Majestic and BTIS, both Californiabased insurance providers, as well as CardinalComp, a New York-based provider. AmTrust expanded into the community bank segment through a renewal rights agreement with BancInsure. AmTrust acquired CNH Capital Insurance Agencies and Car Care Plan Holdings to bolster the warranty business worldwide. AmTrust acquired First Nonprofit Companies and First Nonprofit Insurance, providing the ability to offer a variety of insurance products to small and low-hazard nonprofit organizations AmTrust acquired Sequoia, facilitating its development further into California and surrounding Western states with low-hazard insurance products for small businesses. AmTrust acquired Sagicor Europe, a Lloyd s of London insurance platform, facilitating growth in its global warranty business. AmTrust acquired CPPNA, adding administrative services for consumer protection products to its product portfolio. AmTrust further solidified its position as a market leader in the small commercial lines segment through the acquisition of renewal rights of Tower Group International. AmTrust acquired statutory disability benefits coverage in New York from National Benefits Life, providing additional synergy with its workers compensation product. AmTrust announced intent to acquire Insco Dico, which would immediately provide a niche presence in the domestic surety bond business. AmTrust is proud to celebrate 15 years of strategic growth and enduring trust. We are only getting started, and our future rests on a strong foundation.

6 Multinational Approach Albany, New York Atlanta, Georgia Boca Raton, Florida Charlotte, North Carolina Chicago, Illinois Cleveland, Ohio Dallas, Texas Dublin, Ireland Frankfurt, Germany Hamilton, Bermuda Hartford, Connecticut Ho Chi Minh City, Vietnam London, England Madrid, Spain Milan, Italy Moscow, Russia Nashua, New Hampshire New York, New York Nottingham, England Paris, France Portland, Oregon Princeton, New Jersey San Francisco, California São Paulo, Brazil Shanghai, China Stockholm, Sweden 59 Maiden Lane New York, NY p: f: MKT /14