AmTrust Announces Pricing of $80M in Depositary Shares Representing Interests in Preferred Stock

AmTrust Financial Services, Inc.

(the "Company" or "AmTrust") today announced that it priced on September 9, 2014 an underwritten public offering of 3,200,000 of its depositary shares (the "Depositary Shares"), each representing a 1/40th interest in a share of its 7.625% Non-Cumulative Preferred Stock, Series C (the "Preferred Stock"), with a liquidation preference of $1,000.00 per share (equivalent to $25.00 per Depositary Share), or $80 million in aggregate liquidation preference. The offering price per Depositary Share is $25.00, for aggregate gross proceeds of $80 million. The Company has granted the underwriters a 30-day option, expiring on October 9, 2014, to purchase up to an additional 480,000 Depositary Shares from the Company on the same terms and conditions. Each Depositary Share entitles the holder to a proportional fractional interest in all rights and preferences of the Preferred Stock represented thereby (including any dividend, liquidation, redemption and voting rights). The Company expects the offering to close on September 16, 2014, subject to customary closing conditions. Dividends on the Preferred Stock represented by the Depositary Shares will be payable on the liquidation preference amount, on a non-cumulative basis, when, as and if declared by the board of directors of the Company, at a rate of 7.625% per annum, quarterly in arrears, on March 15, June 15, September 15 and December 15 of each year, beginning on December 15, 2014, from and including the date of original issuance. The Preferred Stock represented by the Depositary Shares is not redeemable prior to September 16, 2019. After that date, the Company may redeem at its option, in whole or in part, the Preferred Stock represented by the Depositary Shares at a redemption price of $1,000.00 per share (equivalent to $25.00 per Depositary Share) plus any declared and unpaid dividends for prior dividend periods and accrued but unpaid dividends (whether or not declared) for the then current dividend period. The Company intends to apply to list the Depositary Shares for trading on the New York Stock Exchange. The Company expects to use the net proceeds from the offering for general corporate purposes, which may include working capital, capital expenditures and/or strategic acquisitions. This announcement does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor will there be any offer or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The Depositary Shares may be offered only by means of a prospectus supplement and accompanying base prospectus. You may obtain a copy of the prospectus supplement and accompanying prospectus for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the underwriters may arrange to send you these documents if you request them by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, New York, NY 10014, or by email at prospectus@morganstanley.com; from UBS Securities LLC, 299 Park Avenue, New York, NY 10171, Attention: Prospectus Specialist, (877) 827-6444, ext. 5613884; or from J.P. Morgan Securities LLC, Attention: Investment Grade Syndicate Desk, 383 Madison Avenue, New York, NY 10179, (212) 834-4533.