- Detailed Letter from Alistair Capital Management Explains the Need for an Investigation into Intra-Company and Related Party Reinsurance Agreements
NEW YORK, Dec. 30, 2014 /PRNewswire/ -- Alistair Capital Management, L.L.C. (together with its affiliates, "Alistair Capital" or "the Firm") today announced that Alistair Capital has delivered a letter to the Prudential Regulation Authority, a division of the Bank of England, regarding property and casualty insurer AmTrust Financial Services, Inc. ("AmTrust" or "the Company") (NASDAQ: AFSI).
In the letter, the full text of which is available at http://www.alistaircapital.com/amtrust/, Alistair Capital describes why it believes AmTrust and its subsidiaries pose particular risk to the policyholders of AmTrust Europe, Ltd. and the Lloyd's Central Fund.
Alistair Capital emphasizes that its primary concern is the counterparty risk associated with intra-company reinsurance agreements between AmTrust's U.S., U.K., and Irish subsidiaries and AmTrust's Bermuda-domiciled reinsurance captive, AmTrust International Insurance, Ltd. ("AII").
In preparing its letter, Alistair Capital relied solely upon publicly available documents such as AmTrust's filings with the Securities and Exchange Commission and similar agencies, foreign and domestic, whose materials are available online. Alistair Capital notes the conclusions expressed in its letter reflect the personal opinions of its President, Casey H. Nelson, which are based upon the materials referenced in the letter. Please be advised that as a result of its analysis and the concerns expressed in its letter, Alistair Capital Fund, L.P. maintains a short position in AmTrust common stock and owns put options on the same.
About Alistair Capital Management, L.L.C.
Alistair Capital Management, L.L.C. was founded in 2009 by Casey H. Nelson and manages Alistair Capital Fund, L.P.
