AmTrust Financial Services was founded by brothers George and Michael Karfunkel in 1998. In 2005, Ronald Pipoly was appointed as Chief Financial Officer. AmTrust began trading on the NASDAQ Global Select Market on November 13, 2006. In 2016, Barry Zyskind, Michael Karfunkel's son-in-law, was appointed as Chairman in addition to existing roles as Chief Executive Officer, President and Chairman of Executive Committee. Zyskind was listed by Forbes as the best performing CEO in the Insurance industry in December 2014. In 2017, Adam Karkowsky was appointed as Chief Financial Officer. In November 2018, AmTrust completed a go-private transaction, merging with Evergreen Parent, L.P., an entity formed with private equity funds managed by Stone Point Capital LLC, together with the Karfunkel-Zyskind family. In January 2019, AmTrust voluntarily delisted and deregistered all series of preferred stock and subordinated notes. Adam Karkowsky became president of AmTrust in December 2019. In June 2020, The Securities and Exchange Commission has charged AmTrust Financial Services and its former Chief Financial Officer, Ronald E. Pipoly Jr., for failure to report relevant information about how the firm measured the policy costs and assets for 2015 and previous years. AmTrust and Pipoly have committed to mandatory injunctions on potential violations of such terms and to compensate $10.3 million and $75,000 in criminal fines, respectively. Pipoly has since decided to disburse $140,000 and compensate $22,499 in tax on the discrimination.
Affiliated companies and subsidiaries
Most of the company's business is contracted worldwide through more than 20 insurance companies and subsidiaries. The following are some of their US subsidiaries: The company's foreign insurance subsidiaries include:
AmTrust International Insurance Ltd.
AmTrust International Underwriters Designated Company Activity
The Small Commercial Business segment of AmTrust provides worker's compensation to small businesses which operate in low and medium hazard classes. Included in this class are restaurants, retail stores, physicians and other professional offices. They also offer commercial package and other property and casualty insurance products to small businesses.
Specialty Program Business Insurance
This segment provides workers’ compensation, general liability, commercial auto liability, excess surplus lines insurance programs and other specialty commercial property and casualty insurance through managing general agents.
Specialty Risk and Extended Warranty
This segment is engaged in providing custom designed coverages. Included are accidental damage plans and payment protection plans sold in connection with the sale of consumer and commercial goods in the United States and Europe.
Recognition
AmTrust Financial Services was named as a Northcoast 99 Best Places to Work Winner for 2017.
U.S. Securities and Exchange Commission Charges and Settlement
On June 17, 2020, the U.S. Securities and Exchange Commission charged AmTrust Financial Services Inc. and its former CFO Ronald E. Pipoly Jr. with failing to disclose material facts about how the company estimated its insurance losses and reserves. They have agreed to pay a combined $10.5 million to settle the SEC’s charges. Without admitting or denying the SEC’s allegations, AmTrust and Pipoly have agreed to permanent injunctions against future violations of these provisions and to pay penalties of $10.3 million and $75,000, respectively. Pipoly has also agreed to disgorge $140,000 and pay $22,499 in prejudgment interest. The settlements with AmTrust and Pipoly are subject to court approval.
