DGAP-News: AmTrust Financial Plans Expansion in Downtown Cleveland

AmTrust Financial Services, Inc.

07.12.2011 23:34
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State, County&City Incentives to Help Bring New Jobs

CLEVELAND, 2011-12-07 23:34 CET (GLOBE NEWSWIRE) —
AmTrust Financial Services, Inc. (Nasdaq:AFSI), a multinational property and
casualty insurer, and its affiliated companies today announced that – as a
result of incentives offered by local and State government – it plans to create
hundreds of new jobs in Downtown Cleveland over the next three years. The
plans are contingent upon various governmental approvals in the coming months.

Subject to those approvals, AmTrust Financial, based in New York City, and its
affiliates would significantly expand their existing Northeast Ohio operations.
AmTrust–s expanded operations would be located at 800 Superior Avenue, the
office building at the southwest corner of East 9th Street and Superior Avenue.
An affiliate of AmTrust – 800 Superior, LLC – bought the largely vacant
office tower earlier this year and has committed to spending at least $20
million, mostly for upgrades to the building. The 23-story office building
was built in 1969.

–We–re eager to build upon our existing investments in Northeast Ohio and
excited to be part of the urban renaissance in Downtown Cleveland, which is in
the midst of a sweeping and exciting transformation,– said Barry Zyskind, Chief
Executive Officer of AmTrust.

The State of Ohio, Cuyahoga County and the City of Cleveland are collectively
offering approximately $23 million in incentives to AmTrust to make the
company–s office expansion here competitive and possible.

–This is a significant undertaking by AmTrust, and one that would not be
possible without the support and creative resources offered by Gov. John
Kasich, Cuyahoga County Executive Ed FitzGerald and Cleveland Mayor Frank
Jackson,– Zyskind added. –We–ve been very impressed with the cooperation and
encouragement we continue to receive from our public partners.–

AmTrust and its affiliates have operations in 22 states as well as overseas.
The company has no affiliation with the former AmTrust Bank or Ohio Savings
Bank, both owned by New York Community Bank.

Ohio Governor John R. Kasich said he looked forward to AmTrust–s continued
growth.

–When an industry leader like AmTrust adds hundreds of jobs here, it–s another
indication that Ohio is doing what it takes to get back on track,– Kasich said.
–I–m thrilled about their decision and look forward to working with them,
Mayor Jackson, and County Executive FitzGerald to help AmTrust succeed and grow
in Ohio. Creating a jobs-friendly climate is Ohio–s number one priority, and
job creators across the country are beginning to take notice of the progress
we–re making.–

AmTrust Financial Services began its Northeast Ohio presence in 2001 with a
one-person office in Beachwood. In 2005, the company bought an office building
in Seven Hills, the current site of an AmTrust operational hub that employs
more than 245 people.

Most of the employees at the Seven Hills office would be relocated to Downtown
Cleveland. Relocating these employees downtown would likely occur over the
next three years. The company may maintain some employees at the Seven Hills
office over a longer term. The City of Cleveland and the City of Seven Hills
had previously entered into a tax sharing agreement under which one half of the
payroll tax from those employees who are relocated to the City of Cleveland
will be rebated to the City of Seven Hills for a five year term.

The new jobs in Downtown Cleveland are expected to result from the continued
expansion of AmTrust–s existing business and acquisitions.

The public financial incentives to AmTrust come largely in the form of tax
credits and loans. The State of Ohio, for example, is offering $11.4 million
in job creation tax credits and $5 million in loans.

All of the incentives are dependent upon AmTrust creating a significant number
of jobs over the next three years. Some of those incentives require
legislative and/or administrative approvals.

The announcement is yet another significant economic development investment in
Downtown Cleveland and contributes to the city–s effort to diversify the local
economy.

–This is game-changing for the local economy and Downtown Cleveland,– Mayor
Frank Jackson said. –Talking about jobs is one thing, but actually creating
them is the real thing. It–s rare anywhere in the country to create hundreds
of new good jobs in one fell swoop. AmTrust will reinvigorate and upgrade a
major Cleveland office building and will contribute significantly to a new
vibrancy that is being created downtown.–

Ed FitzGerald, Cuyahoga County Executive, said such a sizable influx of new,
good-paying jobs will provide the county with a substantial, sustained economic
shot in the arm.

–In order to make a sizable investment in a community, businesses need to
believe in that community–s future,– FitzGerald said. –AmTrust–s decision
sends a positive message about the private sector–s faith in Northeast Ohio and
our local workforce. We are pleased to be participating in this effort, and we
will continue to aggressively seek out new opportunities for growth and job
creation.–

AmTrust sent a bullish message about Downtown Cleveland when its affiliate
bought the largely vacant 800 Superior Avenue office tower. Under the current
plans, AmTrust would occupy between 250,000 and 300,000 square feet in the
building, leaving a portion of the total 450,000 square feet still available to
attract more new jobs downtown.

About AmTrust Financial Services, Inc.

AmTrust Financial Services, Inc., headquartered in New York City, is a
multinational insurance holding company, which, through its insurance carriers,
offers specialty property and casualty insurance products, including workers–
compensation, commercial automobile and general liability; extended service and
warranty coverage. For more information about AmTrust, visit
www.amtrustgroup.com, or call AmTrust toll-free at 866.203.3037.

The AmTrust Financial Services, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3280

CONTACT: Nancy Lesic
nlesic@lesiccamper.com
216.696.7686
News Source: NASDAQ OMX

07.12.2011 Dissemination of a Corporate News, transmitted by DGAP –
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Language: English
Company: AmTrust Financial Services, Inc.

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ISIN: US0323593097
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End of Announcement DGAP News-Service

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