Insurance group AmTrust Financial Services Inc. (Nasadq: AFSI) is buying ARI Mutual Insurance Co., as industry consolidation persists.
ARI specializes in writing commercial automobile insurance. The Newtown, Pennsylvania-based business insures customers in New Jersey, Pennsylvania and Maryland. Terms of the deal weren't disclosed.
AmTrust is a New York-based insurance holding company that provides specialty property and casualty insurance, including workers' compensation, commercial automobile, general liability and warranty coverage.
Locke Lord LLP was AmTrust's legal adviser on the deal. Griffin Financial Group LLC was ARI's financial adviser, and Stevens & Lee provided legal advice.
The fragmented insurance industry has been consolidating for years. Recent transactions include First American Title Insurance Co.'s deal for TitleVest Holding Group LLC, earlier in March, and Hub International Ltd.'s purchase of Laubacher Insurance Agency Inc., also in March.
For more on the sector, see Insurance Firms Find that Bigger May Be Better.