A.M. Best Assigns Debt Ratings to AmTrust Financial Services Inc.’s Convertible Senior Unsecured Debt Offering

A.M. Best has assigned a debt rating of “bbb” to the $69 million 5.5% convertible senior unsecured notes due 2021, $158 million 2.75% convertible senior unsecured notes due 2044 and $76 million 2.75% convertible senior unsecured notes due 2044 of AmTrust Financial Services Inc. (AmTrust) (headquartered in New York, NY) [NASDAQ: AFSI]. The outlook assigned to the ratings is stable. All remaining ratings of AmTrust and its subsidiaries are unchanged. (Please see related A.M. Best’s press release dated May 30, 2014 here.)

The proceeds from the issuance will be used for other general corporate purposes. With the issuance of the convertible senior notes, AmTrust’s adjusted debt-to-total capital and adjusted debt-to-tangible capital are approximately 23% and 31%, respectively, and are within A.M. Best’s guidelines for its current rating level. In addition, AmTrust’s interest coverage ratio is expected to remain solid for these ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Analyzing Insurance Holding Company Liquidity

• Equity Credit for Hybrid Securities

• Insurance Holding Company and Debt Ratings

• Risk Management and the Rating Process for Insurance Companies

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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