Equity Firm Takes Majority Interest in AMS

AMS Services, Inc. announced that Trident II, LP, a private equity investment partnership, will acquire a majority equity interest in AMS, a major insurance information and technology supplier. Terms of the transaction were not disclosed.

AMS is owned by a consortium of members, including CNA, Fireman's Fund Insurance Company, AIG, The Travelers, SAFECO, Atlantic Mutual and Westfield Companies.

Members of the AMS consortium will continue to have ownership and board representation. David Wroe, current AMS chairman and chief technology officer of CNA Insurance, said that the addition of Trident II to the roster of AMS owners will make it possible for AMS to enter the next major stage of its organizational and product life. He said, "We are all proud of the progress AMS has made over the last 25 years. But now is the time for a technology-focused owner to take the company to an even higher level of leadership and service to the insurance industry."

"This is a major step forward for AMS and our ability to build a superior technology platform for insurance agencies and companies," said Ken Benvenuto, AMS Services chief executive officer. "The capital and other resources provided by Trident II will enable AMS to enhance our existing products and services, and at the same time, invest in the development of a new generation of integrated technology and information services provided to our customers over the Internet."

Benvenuto continued, "The investment and involvement of Trident II is perfectly in step with our future direction. Our mission is to provide a technological advantage to insurance agencies and companies, and this investment will enable us to take that advantage to the next level."

John Hahn, chairman of the Alliance for Productive Technology, former chairman of AGENA Corporation and executive vice president of Atlantic Mutual Insurance Company, said, "The investment and commitment to AMS by Trident II comes at a perfect time for AMS, its customers and the industry.

"AMS has been a staunch supporter of APT, ACORD and IVANS since their inceptions. New technologies and new industry challenges call for an even stronger leadership role," he added. "The involvement of Trident II will allow AMS to hasten its development of new, open technologies that promise significant efficiency breakthroughs for the distribution system and that will fulfill the promise of single-entry, multiple-company interface."

AMS is a family of insurance technology companies that provides software and information products to insurance agencies and companies. In business for more than 25 years and serving more than 30,000 customers, AMS offers agency and company systems, rating services and technology, electronic delivery of underwriting reports and a comprehensive electronic insurance reference library.

Trident II, LP, is a limited partnership with aggregate capital commitments of approximately $1.3 billion from institutional investors. Trident II makes private equity and equity-related investments in the global insurance, reinsurance, insurance technology and related industries.