SEC Has Been Investigating AmTrust Since 2013, Company Discloses

AmTrust Financial Services has acknowledged that it’s been under investigation by the SEC since June 2013 for matters including accounting practices related to its loss and loss-adjustment expense reserve estimates. The disclosure was made in a definitive proxy statement filed with the Securities and Exchange Commission on May 4. The filing comes a month before common stockholders will vote June 4 on whether to accept $13.50 per share in a $2.7 billion deal to privatize the company. According to the filing, the SEC investigation has included “a review of the company’s inves...