Private equity backer to Ardonagh buys business from AmTrust in 2018, boosting income
Ardonagh’s private equity backers Madison Dearborn boosted income at troubled insurer AmTrust by snapping up part of the business.
AmTrust posted net income of $661.8mn in the first quarter - but this was only possible after it sold a majority stake in its US fee business to Madison Dearborn for $724.1m.
AmTrust slipped into an underwriting loss in the first quarter with a combined ratio of 103.4%, well below the 95.6% reported in the same period last year.
Net earned premiums grew to $1.35 billion from $1.22 billion but total losses and expenses increased to $1.61 billion from $1.37 billion.
The troubled insurer is trying to take itself private. It is also under investigation from US Securities and Exchange Commission over accounting practices, reserve bookings and acquisitions.
No comments yet