Insight and Intelligence on the London & International Insurance Markets 24 Jul 2017
AmTrust shares advance on ADC deal
- 7 July 2017
Investors today responded positively to AmTrust's $400mn adverse development cover (ADC) agreement with Arch-owned reinsurer Premia.
AmTrust shares rose almost 3.7 percent to close at $15.30 on the Nasdaq stock exchange.
The insurer's decision to secure about $400mn in coverage above its $6.59bn of carried loss reserves as of 31 March ill result in a $61mn pre-tax charge against second quarter earnings.
AmTrust said the deal became effective on 30 June and covered exposures through to 1 April 2017.
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