AmTrust Financial Services, Inc. and Blackstone Credit & Insurance (BXCI) have announced a strategic agreement to spin off AmTrust’s Managing General Agencies (MGAs) and fee businesses across the U.S., U.K., and Continental Europe into a new, independent company. The new platform will include seven AmTrust subsidiaries—ANV, Risico, Collegiate, AmTrust Nordic, Arc Legal, Qualis, and Abacus—and is expected to employ over 700 people. 

As part of the deal, AmTrust will enter a 10-year capacity agreement, remaining the underwriter for the existing books of business offered through the MGAs. Adam Karkowsky, current President of AmTrust, will become Chairman and CEO of the new company, joined by CFO Joseph Brecher and COO Jacob Decter. 

“Bringing these businesses together as a standalone company creates a diversified, multinational MGA platform with significant value creation potential through organic growth, expanded partnerships, and acquisitions,” said Karkowsky. 

“BXCI has extensive experience investing in and supporting insurance services businesses, helping them achieve their full potential,” added Louis Salvatore, senior managing director at BXCI. 

The new company will operate under a new brand name, to be announced later. The transaction is expected to close by year-end 2025, pending regulatory approvals. Evercore is serving as financial advisor to AmTrust, with Paul, Weiss as legal counsel; BXCI is advised by Latham & Watkins.