Acquisitions

The Insco Dico Group

On January 3, 2014, the Company completed the acquisition of Insco Insurance Services, Inc. ("Insco Dico") and its subsidiaries for a purchase price of approximately $88,700. The transaction was funded with the Company's existing working capital. Insco Dico's subsidiaries include Developers Surety and Indemnity Company and Indemnity Company of California, which offer surety insurance to developers and contractors in all 50 states with California as the largest state. In addition, Insco Dico's subsidiary, Builders Insurance Services, markets general liability insurance policies to contractors in several states in the western region of the U.S.

A summary of the preliminary assets acquired and liabilities assumed for Insco Dico are as follows:



(Amounts in Thousands)
Assets
	Cash and investments	$	130,031
	Premium receivables	8,684
	Reinsurance recoverable	5,799
	Deferred tax asset	3,845
	Other assets	2,114
	Property and equipment	1,190
	Goodwill and intangible assets	16,494
Total assets		$	168,157

Liabilities
	Unearned premiums	$	25,715
	Loss and loss expense reserves	25,210
	Accrued liabilities	10,210
	Notes payable	10,000
	Funds held for policyholders	5,864
	Deferred tax liability	2,458
Total liabilities		$	79,457
Cash paid		$	88,700

The goodwill and intangible assets, as well as Insco Dico's results of operations, are included as a component of the Small Commercial Business segment. The identifiable intangible assets consist of agency relationships, which have a 20 year life, and licenses that have an indefinite life. The Company is in the process of completing its acquisition accounting and expects to have it completed in 2014.

As a result of this transaction, the Company recorded approximately $13,206 and $41,971 of written premium during the three and nine months ended September 30, 2014, respectively, related to Insco Dico. Additionally, the Company recorded approximately $1,767 and $2,346 of fee income during the three and nine months ended September 30, 2014, respectively, related to Insco Dico.

Sagicor Europe Limited

On December 23, 2013, the Company, through one of its subsidiaries, completed the acquisition of Sagicor Europe Limited and its wholly owned subsidiaries, including Sagicor at Lloyd's Limited ("Sagicor"), from Sagicor Financial Corporation for approximately $93,113. Sagicor Europe Limited and Sagicor at Lloyd's Limited subsequently changed their names to AmTrust Lloyd's Holdings Limited and AmTrust at Lloyd's Limited, respectively. AmTrust at Lloyd's Limited is a managing agency and owner of Lloyd's property/casualty insurance syndicate 1206 with stamp capacity of $330,000 and Lloyd's life insurance syndicate 44 with stamp capacity of $16,500.

A summary of the preliminary assets acquired and liabilities assumed for AmTrust Lloyd's Holdings Limited are as follows:



(Amounts in Thousands)
Assets
	Cash and investments	$	429,476
	Prepaid insurance	122,673
	Premium receivables	89,801
	Other receivable	54,479
	Deferred tax asset	29,916
	Other assets	10,502
	Property and equipment	5,010
	Goodwill and intangible assets	33,539
Total assets		$	775,396

Liabilities
	Loss and loss expense reserves	$	496,836
	Unearned premium	113,182
	Accrued expense and other liabilities	55,950
	Ceded reinsurance	16,315
Total liabilities		$	682,283
Cash paid		$	93,113

The goodwill and intangible assets, as well as AmTrust Lloyd's Holdings Limited's results of operations, are included as a component of the Specialty Risk and Extended Warranty segment. The Company is in the process of completing its acquisition accounting and expects to have it completed in 2014.

As a result of this transaction, the Company recorded approximately $74,920 and $242,519 of written premium during the three and nine months ended September 30, 2014, respectively, related to Sagicor.