AmTrust Enters Into Reinsurance Agreement With Premia Holdings

AmTrust Financial Services Inc. has entered into a reinsurance agreement with Premia Reinsurance Ltd. to cover adverse reserve development in excess of AmTrust's net loss reserves. The agreement will extend $400 million in coverage in excess of the carried loss reserves of approximately $6.59 billion, up to about $6.99 billion. AmTrust will maintain control of claims handling. The agreement will be accounted for in AmTrust's second quarter financial statements as a retroactive reinsurance agreement. It will result in a one-time, pre-tax charge to net income of about $61 million. On ...