New York-based AmTrust Financial Services announced that it has entered into an agreement, pending regulatory approval, to acquire Sequoia Insurance Company and its subsidiaries, Sequoia Indemnity Company and Personal Express Insurance Company (“Sequoia”) for approximately $60 million.
Sequoia offers a variety of low hazard, property/casualty insurance products including workers’ compensation and commercial package insurance to small businesses in key western states. In 2012, Sequoia wrote gross written premium of approximately $140 million.
“We believe current market conditions will continue to provide opportunities to supplement our organic growth with strategic acquisitions similar to Sequoia where our proprietary technology, economies of scale, pricing discipline and experienced management improves the profitability of acquired insurance businesses in our chosen niche markets,” said AmTrust Financial Services, Inc. president and CEO, Barry Zyskind. “In addition, we believe combining organic growth with appropriate strategic acquisitions maintains attractive returns on equity and thus, improves shareholder value.”
Source: AmTrust Financial Services