Consolidation continues with acquisition of major Texas company

AmTrust inks purchase deal with Republic Insurance Holdings in a deal that hastens AmTrust’s move into the Southwest

Insurance News

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In a world where consolidation is rampant, it is not just small companies that are being purchased. Recently, Republic Companies and Republic Insurance Holdings was purchased by AmTrust Financial Services.
 
The deal, valued at about $232 million, is expected to close in the first half of 2016.  Texas-based Republic reported total direct premiums of $711 million in 2014. It provides personal and commercial property and casualty insurance through agents in Texas and across the South from New Mexico to Mississippi.
 
Republic was founded in 1903, when brothers Ike and George Jalonick organized a new Texas-owned fire insurance company. The brothers formed a new stock company in Dallas, later combining with other companies, evolving into the companies of Republic Group.
 
“Republic is an excellent addition to our company’s property/casualty and service and fees business,” said AmTrust CEO Barry Zyskind. “The combination of Republic’s well-established business and brand with AmTrust’s efficient operating platform and strong balance sheet offers great opportunities for profitable growth especially in Republic’s key Southwestern markets. We look forward to Republic’s seasoned team of managers and employees contributing to the success of our company and to the benefit of our shareholders, agents and customers,” he added.
 

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