First Nonprofit Insurance Company and First Nonprofit Companies, Inc. have agreed to be acquired by AmTrust Financial Services, Inc. (Nasdaq: AFSI). This decision is the culmination of a two-year search by First Nonprofit for an appropriate partnership.
Our new relationship with AmTrust Financial Services provides our organization with valuable support to meet some critical needs. AmTrust’s substantial resources include: an “A” rating by A.M. Best; over $1 billion in capital; complementary product, marketing and underwriting expertise including workers compensation; and substantial IT capabilities. None of these resources would have been available to us as a stand-alone company.
The acquisition of First Nonprofit Companies, Inc. has already been finalized and the acquisition of First Nonprofit Insurance Company is expected to be completed by the second quarter following regulatory and policyholder approval.
As a result of this announcement, A.M. Best Co. has placed First Nonprofit’s financial strength rating of A-(Excellent) under review with positive implications. These positive implications reflect the anticipated benefits from our being part of a much larger organization with access to additional resources.
When the acquisition is complete, we will operate under the flagship name, First Nonprofit Group. Our headquarters will continue to be Chicago with regional and/or subsidiary operations in Phoenix and Baltimore.
Phil Warth has been providing vision and leadership to First Nonprofit for the last 21 years and will continue on as Chairman of First Nonprofit Companies, Inc. and Chairman of First Nonprofit Insurance Company; Bob White as COO of First Nonprofit Insurance Company; and Mario Poretto as President of First Nonprofit Companies.
Also as a result of this acquisition, First Nonprofit Foundation’s capital is expected to grow significantly. The increase will allow the Foundation to substantially expand its support of the nonprofit community.
AmTrust Financial Services, Inc., rated “A” (Excellent) by A.M. Best and headquartered in New York City, is a multinational insurance holding company, which, through its insurance carriers, offers specialty property and casualty insurance products, including workers’ compensation, commercial automobile and general liability; extended service and warranty coverage.