Multinational insurance holding company AmTrust Financial Services has inked an agreement with the UK-based CPP Group to acquire CPPNA for approximately $40m.
Headquartered in Saint Louis Park, Minnesota, CPPNA provides administrative services for consumer protection products, such as identity theft protection and warranties related to credit card purchases.
Expected to generate $70m in fee revenue over the next year, the company services 750,000 active policy members, who are customers of CPPNA's financial services partners.
AmTrust Financial Services CEO and president Barry Zyskind said the acquisition of CPPNA expands the company's administrative services' revenue and profit, contributing to its goal of successfully growing the fee based business.
''In addition, the purchase of CPPNA provides the opportunity to offer additional products and services to CPPNA's significant U.S. customer base,'' Zyskind added.
The transaction is expected to close during the second quarter of 2013.
New York-based AmTrust Financial Services provides specialty property and casualty insurance products, such as workers' compensation, commercial automobile and general liability, extended service and warranty coverage, through its insurance carriers.