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East Coast workers comp insurer acquired for $90 million

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AmTrust Financial Services Inc. said Friday that it has agreed acquire commercial and property insurer AmeriHealth Casualty Insurance Co. from Independence Health Group Inc. for approximately $90 million in cash.

New York-based AmTrust is an insurance holding company. AmeriHealth generated gross written premium of approximately $116 million in 2015, according to AmTrust’s statement.

The transaction is awaiting regulatory approval and is expected to close during the fourth quarter of 2016, AmTrust said.

Barry Zyskind, AmTrust’s chairman, president and chief executive officer, said in a statement that AmeriHealth’s background of providing workers compensation insurance to small-to-medium-sized businesses and municipalities in Pennsylvania and New Jersey will help expand AmTrust’s presence in those states.

“AmeriHealth Casualty will bring a strong leadership team and solid book of business. We expect to continue to deliver a high standard of workers compensation coverage,” he said in a statement. 

Independence Health Group, a Philadelphia-based holding company, will retain CompServices Inc., a workers comp third-party administrator, according to AmTrust. CompServices will continue to provide TPA services to AmTrust, the statement said.