AmTrust Financial Services and Blackstone Credit & Insurance (BXCI) have completed a strategic transaction to spin off a portfolio of AmTrust’s managing general agencies (MGAs) and fee-based businesses into a newly formed independent company, ANV Group Holdings Ltd.

The transaction, which follows regulatory approval having been initially announced in September, brings together AmTrust’s MGA operations in the US, UK, and Continental Europe under the ANV banner. AmTrust and ANV have entered into a 10-year capacity agreement, with AmTrust continuing to underwrite the existing books of business offered through the MGAs. The agreement covers seven AmTrust subsidiaries: ANV Specialty, Risico, Collegiate, ANV Nordic, Arc Legal, Qualis, and Abacus.

Read more: AmTrust, Blackstone to spin off MGA and fee business

The MGAs provide a broad range of specialty insurance products, including cyber excess and surplus (E&S), directors and officers (D&O), transaction risk insurance, professional indemnity, legal expense, mortgage and structured credit, warranty, agricultural workers’ compensation, income protection, accident and health (A&H), and niche property coverages for both residential and commercial clients.

Adam Karkowsky (pictured), formerly president of AmTrust, has been appointed chairman and CEO of ANV Group Holdings. The leadership team also includes Joseph Brecher (chief financial officer), Jacob Decter (chief operating officer), and Aaron Basilius (head of MGAs US), all of whom previously held senior roles at AmTrust.

Barry Zyskind, chairman and CEO of AmTrust, said the transaction builds on the foundation of AmTrust’s global MGA platform and positions ANV for further growth. “Under the leadership of Adam, I look forward to ANV achieving new levels of profitable portfolio growth and continuing to provide strong underwriting and service. We will continue to work with ANV and participate in its future success, through our significant retained equity interest,” Zyskind said.

Adam Karkowsky, Chairman and CEO of ANV, added: “With the launch of an independent, diversified multinational MGA platform built on deep insurance expertise and years of history together, ANV is well-positioned to create meaningful growth and long-term value with continued support from our partners, AmTrust and Blackstone.”

The new company will focus on scaling its specialty and affinity insurance offerings, acquiring and incubating MGAs, and developing new products for brokers, partners, and clients across the US, UK, and Europe.

AmTrust, which serves clients in more than 60 countries, will retain a significant equity interest in ANV and continue to provide underwriting capacity for its MGA operations.

The transaction is expected to accelerate ANV’s growth ambitions and expand its reach in the specialty insurance market.