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AMTRUST FINANCIAL SERVICES CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2011
AMTRUST FINANCIAL SERVICES CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Schedule II

AMTRUST FINANCIAL SERVICES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
  
BALANCE SHEET — PARENT COMPANY ONLY

   
  December 31,
     2011   2010
     (In Thousands)
Assets:
                  
Cash   $ —     $ —  
Invested assets     9       5,009  
Carrying value of subsidiaries, at equity     1,107,857       912,027  
Other assets     142,090       113,844  
Total Assets     1,249,956       1,030,880  
Liabilities:
                  
Due to affiliates – net     42,654       150,202  
Notes payable     7,362       21,066  
Convertible senior notes     138,506       —  
Junior subordinated debt     123,714       123,714  
Other liabilities     47,157       19,384  
Total Liabilities     359,393       314,366  
Stockholders’ Equity
                  
Common stock     849       844  
Paid-in and contributed capital     582,321       548,731  
Treasury shares     (300,365 )      (300,489 ) 
Accumulated other comprehensive income     (9,999 )      (266 ) 
Retained earnings     617,757       467,694  
Total Shareholders’ Equity     890,563       716,514  
Total Liabilities and Shareholders’ Equity   $ 1,249,956     $ 1,030,880  

STATEMENT OF INCOME — PARENT COMPANY ONLY

     
  Year Ended December 31,
     2011   2010   2009
     (In Thousands)
Income:
                           
Investment income   $ 294     $ 2,900     $ 4,154  
Equity in undistributed net income of consolidated subsidiaries and partially-owned companies     212,926       162,202       117,473  
Miscellaneous income (expense)     63       120       661  
Total Income     213,283       165,222       122,288  
Expenses:
                           
Interest expense     3,861       1,725       3,422  
Federal tax expense     —       4,746       5,547  
Other expenses from operations     15,269       10,359       10,096  
Total Expenses     19,130       16,830       19,065  
Net Income   $ 194,153     $ 148,392     $ 103,223  

Schedule II

AMTRUST FINANCIAL SERVICES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
  
STATEMENT OF CASH FLOWS — PARENT COMPANY ONLY

     
  December 31,
     2011   2010   2009
     (In Thousands)
Cash flows from operating activities:
                           
Net income   $ 194,153     $ 146,340     $ 103,223  
Depreciation and amortization     948       1,197       1,104  
Stock option compensation     5,571       3,386       4,241  
Discount on note     462       771       1,067  
Adjustments to reconcile net income to net cash changes in assets (increase) decrease:
                           
Carrying value of equity interest in subsidiaries     (221,166 )      (71,492 )      (117,224 ) 
Equity (earnings) losses and gain on investments in unconsolidated subsidiaries     (7,871 )      (24,044 )      822  
Other assets     (28,246 )      20,589       (5,300 ) 
Changes in liabilities increase (decrease):
                           
Due to affiliates     (107,548 )      13,536       58,994  
Other liabilities     27,772       8,449       (2,476 ) 
Net cash provided by (used in) operating activities     (135,925 )      98,732       44,451  
Cash flows from investing activities:
                           
Capital expenditures     (20 )      (299 )      (36 ) 
Investment in subsidiary     (4,027 )      —       —  
Investment in unconsolidated subsidiary     —       (53,055 )      —  
Acquisition of intangible assets     —       —       (7,610 ) 
Acquisition of subsidiary companies, net of cash acquired     —       (11,295 )      —  
Net cash used in investing activities     (4,047 )      (64,649 )      (7,646 ) 
Cash flows from financing activities:
                           
Issuance of debt     298,200       —       —  
Payment of debt     (137,367 )      (20,833 )      (20,833 ) 
Financing fees     (6,574 )      —       —  
Net, issuance (repurchase) of common stock     5,425       1,770       (5,771 ) 
Dividends paid     (19,712 )      (16,647 )      (13,088 ) 
Net cash (used in) provided by financing activities     139,972       (35,710 )      (39,692 ) 
Net decrease in cash and cash equivalents     —       (1,627 )      (2,887 ) 
Cash and cash equivalents, beginning of the year     —       1,627       4,514  
Cash and cash equivalents, end of period   $ —     $ —     $ 1,627