| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Delaware                                            |         | 04-3106389                        |
|-----------------------------------------------------|--------------|-----------------------------------|
| (State or other jurisdiction of                     |         | (IRS Employer Identification No.) |
| incorporation or organization)                      |         |                              |
|                                                |         |                              |
| 59 Maiden Lane, 6th  Floor, New York, New York |         | 10038                             |
| (Address of principal executive offices)            |    | (Zip Code)                        |

| Large accelerated filer    ̈    |         | Accelerated filer   x              |
|-----------------------------------------------|--------------|----------------------------------------------|
|                                          |         |                                         |
| Non-accelerated filer    ̈      |         | Smaller reporting company    ̈ |
| (Do not check if a smaller reporting company) |    |                                         |

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|                                   |                                                                                               | Page   |
|----------------------------------------|----------------------------------------------------------------------------------------------------|--------|
| PART I                                 | FINANCIAL INFORMATION                                                                              | 3      |
|                                   |                                                                                               |   |
| Item 1.                                | Unaudited Financial Statements:                                                                    | 3      |
|                                   |                                                                                               |   |
|                                   | Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010 (audited)         | 3      |
|                                   |                                                                                               |   |
|                                   | Condensed Consolidated Statements of Income — Three months ended March 31, 2011 and 2010     | 4      |
|                                   |                                                                                               |   |
|                                   | Condensed Consolidated Statements of Cash Flows — Three months ended March 31, 2011 and 2010 | 5      |
|                                   |                                                                                               |   |
|                                   | Notes to Condensed Consolidated Financial Statements                                               | 6      |
|                                   |                                                                                               |   |
| Item 2.                                | Management’s Discussion and Analysis of Financial Condition and Results of Operations        | 26     |
|                                   |                                                                                               |   |
| Item 3.                                | Quantitative and Qualitative Disclosures About Market Risk                                         | 42     |
|                                   |                                                                                               |   |
| Item 4.                                | Controls and Procedures                                                                            | 44     |
|                                   |                                                                                               |   |
| PART II                                | OTHER INFORMATION                                                                                  | 44     |
|                                   |                                                                                               |   |
| Item 1.                                | Legal Proceedings                                                                                  | 44     |
|                                   |                                                                                               |   |
| Item 1A.      | Risk Factors                                                                                       | 44     |
|                                   |                                                                                               |   |
| Item 2.                                | Unregistered Sales of Equity Securities and Use of Proceeds                                        | 44     |
|                                   |                                                                                               |   |
| Item 3.                                | Defaults Upon Senior Securities                                                                    | 44     |
|                                   |                                                                                               |   |
| Item 4.                                | (Removed and Reserved)                                                                             | 44     |
|                                   |                                                                                               |   |
| Item 5.                                | Other Information                                                                                  | 44     |
|                                   |                                                                                               |   |
| Item 6.                                | Exhibits                                                                                           | 45     |
|                                   |                                                                                               |   |
|                                   | Signatures                                                                                         | 46     |

----

|                                                                                                                                                                           |   | March 31,2011 |      |   | December 31,2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-----------------------|--------|
| (Amounts in Thousands)                                                                                                                                               |   | (Unaudited)        |      |   | (Audited)             |   |
| ASSETS                                                                                                                                                                         |   |               |      |   |                  |   |
| Investments:                                                                                                                                                                   |   |               |      |   |                  |   |
| Fixed maturities, available-for-sale, at market value (amortized cost $1,187,222; $1,192,844)                                                                                  |   | $                  | 1,208,325 |   |                  | $      | 1,208,813 |   |
| Equity securities, available-for-sale, at market value (cost $17,773; $18,577)                                                                                                 |   |               | 16,957    |   |                  |   | 17,412 |   |
| Short-term investments                                                                                                                                                         |   |               | 23,365    |   |                  |   | 32,137 |   |
| Equity investment in unconsolidated subsidiaries – related parties                                                                                                       |   |               | 80,915    |   |                  |   | 77,136 |   |
| Other investments                                                                                                                                                              |   |               | 22,512    |   |                  |   | 21,514 |   |
| Total investments                                                                                                                                                              |   |               | 1,352,074 |   |                  |   | 1,357,012 |   |
| Cash and cash equivalents                                                                                                                                                      |   |               | 246,058   |   |                  |   | 201,949 |   |
| Accrued interest and dividends                                                                                                                                                 |   |               | 9,039     |   |                  |   | 7,979 |   |
| Premiums receivable, net                                                                                                                                                       |   |               | 787,839   |   |                  |   | 727,561 |   |
| Reinsurance recoverable (related party $405,297; $386,932)                                                                                                                     |   |               | 822,546   |   |                  |   | 775,432 |   |
| Prepaid reinsurance premium (related party $296,667; $283,899)                                                                                                                 |   |               | 507,637   |   |                  |   | 484,960 |   |
| Prepaid expenses and other assets                                                                                                                                              |   |               | 211,944   |   |                  |   | 163,905 |   |
| Federal income tax receivable                                                                                                                                                  |   |               | 7,921     |   |                  |   | 10,269 |   |
| Deferred policy acquisition costs                                                                                                                                              |   |               | 237,014   |   |                  |   | 224,671 |   |
| Property and equipment, net                                                                                                                                                    |   |               | 44,224    |   |                  |   | 30,889 |   |
| Goodwill                                                                                                                                                                       |   |               | 106,789   |   |                  |   | 106,220 |   |
| Intangible assets                                                                                                                                                              |   |               | 87,761    |   |                  |   | 91,606 |   |
|                                                                                                                                                                      |   | $                  | 4,420,846 |   |                  | $      | 4,182,453 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                     |   |               |      |   |                  |   |   |   |
| Liabilities:                                                                                                                                                                   |   |               |      |   |                  |   |   |   |
| Loss and loss expense reserves                                                                                                                                                 |   | $                  | 1,311,622 |   |                  | $      | 1,263,537 |   |
| Unearned premiums                                                                                                                                                              |   |               | 1,085,423 |   |                  |   | 1,024,965 |   |
| Ceded reinsurance premiums payable (related party $118,876; $95,629)                                                                                                           |   |               | 317,837   |   |                  |   | 266,314 |   |
| Reinsurance payable on paid losses                                                                                                                                             |   |               | 8,648     |   |                  |   | 11,343 |   |
| Funds held under reinsurance treaties                                                                                                                                          |   |               | 3,038     |   |                  |   | 3,217 |   |
| Securities sold but not yet purchased, at market                                                                                                                               |   |               | 3,955     |   |                  |   | 8,847 |   |
| Securities sold under agreements to repurchase, at contract value                                                                                                              |   |               | 252,366   |   |                  |   | 347,617 |   |
| Accrued expenses and other current liabilities                                                                                                                                 |   |               | 197,624   |   |                  |   | 195,060 |   |
| Deferred income taxes                                                                                                                                                          |   |               | 19,969    |   |                  |   | 9,883 |   |
| Note payable on collateral loan – related party                                                                                                                |   |               | 167,975   |   |                  |   | 167,975 |   |
| Revolving credit facility                                                                                                                                                      |   |               | 98,200    |   |                  |   | — |   |
| Secured term loan                                                                                                                                                              |   |               | 10,800    |   |                  |   | — |   |
| Non-interest bearing note payable – net of unamortized discount of $437; $600                                                                                  |   |               | 14,563    |   |                  |   | 14,400 |   |
| Term loan                                                                                                                                                                      |   |               | —   |   |                  |   | 6,667 |   |
| Junior subordinated debt                                                                                                                                                       |   |               | 123,714   |   |                  |   | 123,714 |   |
| Total liabilities                                                                                                                                                              |   |               | 3,615,734 |   |                  |   | 3,443,539 |   |
| Commitments and contingencies                                                                                                                                                  |   |               |      |   |                  |   |   |   |
| Redeemable non-controlling interest                                                                                                                                            |   |               | 600       |   |                  |   | 600 |   |
| Stockholders’ equity:                                                                                                                                                    |   |               |      |   |                  |   |   |   |
| Common stock, $.01 par value; 100,000 shares authorized, 84,457 and 84,381 issued in 2011 and 2010, respectively; 59,641 and 59,565 outstanding in 2011 and 2010, respectively |   |               | 845       |   |                  |   | 844 |   |
| Preferred stock, $.01 par value; 10,000 shares authorized                                                                                                                      |   |               | —   |   |                  |   | — |   |
| Additional paid-in capital                                                                                                                                                     |   |               | 551,046   |   |                  |   | 548,731 |   |
| Treasury stock at cost; 24,816 shares in 2011 and 2010, respectively                                                                                                           |   |               | (300,489  | )      |                  |   | (300,489 | ) |
| Accumulated other comprehensive income (loss)                                                                                                                                  |   |               | 8,099     |   |                  |   | (266 | ) |
| Retained earnings                                                                                                                                                              |   |               | 508,108   |   |                  |   | 467,694 |   |
| Total AmTrust Financial Services, Inc. equity                                                                                                                                  |   |               | 767,609   |   |                  |   | 716,514 |   |
| Non-controlling interest                                                                                                                                                       |   |               | 36,903    |   |                  |   | 21,800 |   |
| Total stockholders’ equity                                                                                                                                               |   |               | 804,512   |   |                  |   | 738,314 |   |
|                                                                                                                                                                      |   | $                  | 4,420,846 |   |                  | $      | 4,182,453 |   |

----

|                                                                                                     |   | Three Months Ended March 31, |    |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
| (Amounts in Thousands)                                                                                   |   | 2011                                             |    |   | 2010 |   |
| Revenues:                                                                                                |   |                                             |    |   |   |   |
| Premium income:                                                                                          |   |                                             |    |   |   |   |
| Net written premium                                                                                      |   | $                                                | 234,019 |   |   | $ | 189,414 |   |
| Change in unearned premium                                                                               |   |                                             | (33,681 | ) |   |   | (41,314 | ) |
| Net earned premium                                                                                       |   |                                             | 200,338 |   |   |   | 148,100 |   |
| Ceding commission – primarily from related party                                                   |   |                                             | 35,684  |   |   |   | 32,248 |   |
| Service and fee income (related parties $3,439; $2,666)                                                  |   |                                             | 25,189  |   |   |   | 7,966 |   |
| Net investment income                                                                                    |   |                                             | 14,192  |   |   |   | 13,599 |   |
| Net realized gain on investments                                                                         |   |                                             | 415     |   |   |   | 1,785 |   |
| Total revenues                                                                                           |   |                                             | 275,818 |   |   |   | 203,698 |   |
| Expenses:                                                                                                |   |                                             |    |   |   |   |   |   |
| Loss and loss adjustment expense                                                                         |   |                                             | 128,696 |   |   |   | 89,821 |   |
| Acquisition costs and other underwriting expenses                                                        |   |                                             | 81,234  |   |   |   | 61,346 |   |
| Other                                                                                                    |   |                                             | 20,196  |   |   |   | 6,234 |   |
| Total expenses                                                                                           |   |                                             | 230,126 |   |   |   | 157,401 |   |
| Income before other income (expense), income taxes and equity in earnings of unconsolidated subsidiaries |   |                                             | 45,692  |   |   |   | 46,297 |   |
| Other income (expenses):                                                                                 |   |                                             |    |   |   |   |   |   |
| Foreign currency loss                                                                                    |   |                                             | (284    | ) |   |   | (717 | ) |
| Interest expense                                                                                         |   |                                             | (3,754  | ) |   |   | (3,572 | ) |
| Net gain on investment in life settlement contracts                                                      |   |                                             | 18,886  |   |   |   | — |   |
| Total other income (expenses)                                                                            |   |                                             | 14,848  |   |   |   | (4,289 | ) |
| Income before income taxes and equity in earnings of unconsolidated subsidiaries                         |   |                                             | 60,540  |   |   |   | 42,008 |   |
| Provision for income taxes                                                                               |   |                                             | 12,342  |   |   |   | 15,168 |   |
| Income before equity in earnings of unconsolidated subsidiaries                                          |   |                                             | 48,198  |   |   |   | 26,840 |   |
| Equity in earnings of unconsolidated subsidiaries – related parties                                |   |                                             | 3,123   |   |   |   | 11,860 |   |
| Net income                                                                                               |   |                                             | 51,321  |   |   |   | 38,700 |   |
| Net income attributable to non-controlling interest of subsidiary                                        |   |                                             | (6,138  | ) |   |   | — |   |
| Net income attributable to AmTrust Financial Services, Inc.                                              |   | $                                                | 45,183  |   |   | $ | 38,700 |   |
|                                                                                                     |   |                                             |    |   |   |   |   |   |
| Earnings per common share:                                                                               |   |                                             |    |   |   |   |   |   |
| Basic                                                                                                    |   | $                                                | 0.76    |   |   | $ | 0.65 |   |
| Diluted                                                                                                  |   |                                             | 0.74    |   |   |   | 0.64 |   |
| Dividends declared per share                                                                             |   | $                                                | 0.08    |   |   | $ | 0.07 |   |
|                                                                                                     |   |                                             |    |   |   |   |   |   |
| Net realized gain (loss) on investments:                                                                 |   |                                             |    |   |   |   |   |   |
| Total other-than-temporary impairment losses                                                             |   | $                                                | — |   |   | $ | (5,138 | ) |
| Portion of loss recognized in other comprehensive income                                                 |   |                                             | — |   |   |   | — |   |
| Net impairment losses recognized in earnings                                                             |   |                                             | — |   |   |   | (5,138 | ) |
| Other net realized gain on investments                                                                   |   |                                             | 415     |   |   |   | 6,923 |   |
| Net realized investment gain                                                                             |   | $                                                | 415     |   |   | $ | 1,785 |   |

----

|                                                                              |   | Three Months Ended March 31, |    |
|-----------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
| (Amounts in Thousands)                                                            |   | 2011                                             |    |   | 2010 |   |
| Cash flows from operating activities:                                             |   |                                             |    |   |   |   |
| Net income                                                                        |   | $                                                | 51,321  |   |   | $ | 38,700 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                             |    |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                                             | 6,071   |   |   |   | 3,391 |   |
| Equity earnings and gain on investment in unconsolidated subsidiaries             |   |                                             | (3,123  | ) |   |   | (11,860 | ) |
| Gain on investment in life settlement contracts                                   |   |                                             | (18,886 | ) |   |   | — |   |
| Realized gain marketable securities                                               |   |                                             | (415    | ) |   |   | (6,923 | ) |
| Non-cash write-down of marketable securities                                      |   |                                             | — |   |   |   | 5,138 |   |
| Discount on notes payable                                                         |   |                                             | 163     |   |   |   | 240 |   |
| Stock compensation expense                                                        |   |                                             | 1,459   |   |   |   | 825 |   |
| Bad debt expense                                                                  |   |                                             | 1,147   |   |   |   | 1,935 |   |
| Foreign currency loss                                                             |   |                                             | 284     |   |   |   | 717 |   |
| Changes in assets - (increase) decrease:                                          |   |                                             |    |   |   |   |   |   |
| Premiums and note  receivables                                          |   |                                             | (61,425 | ) |   |   | (71,823 | ) |
| Reinsurance recoverable                                                           |   |                                             | (47,114 | ) |   |   | (29,247 | ) |
| Deferred policy acquisition costs, net                                            |   |                                             | (12,343 | ) |   |   | (27,517 | ) |
| Prepaid reinsurance premiums                                                      |   |                                             | (22,677 | ) |   |   | (4,440 | ) |
| Prepaid expenses and other assets                                                 |   |                                             | (9,018  | ) |   |   | 16,180 |   |
| Deferred tax asset (liability), net                                               |   |                                             | 10,086  |   |   |   | 5,004 |   |
| Changes in liabilities - increase (decrease):                                     |   |                                             |    |   |   |   |   |   |
| Reinsurance premium payable                                                       |   |                                             | 51,523  |   |   |   | 54,117 |   |
| Loss and loss expense reserve                                                     |   |                                             | 48,085  |   |   |   | 16,058 |   |
| Unearned premiums                                                                 |   |                                             | 60,458  |   |   |   | 42,759 |   |
| Funds held under reinsurance treaties                                             |   |                                             | (179    | ) |   |   | (89 | ) |
| Accrued expenses and other current liabilities                                    |   |                                             | (86     | ) |   |   | (11,190 | ) |
| Net cash provided in operating activities                                         |   |                                             | 55,331  |   |   |   | 21,975 |   |
| Cash flows from investing activities:                                             |   |                                             |    |   |   |   |   |   |
| Net (purchases) sales of securities with fixed maturities                         |   |                                             | 7,157   |   |   |   | (32,316 | ) |
| Net (purchases) sales of equity securities                                        |   |                                             | 1,447   |   |   |   | 3,884 |   |
| Net (purchases) sales of other investments                                        |   |                                             | 161     |   |   |   | (356 | ) |
| Investment in ACAC                                                                |   |                                             | — |   |   |   | (53,055 | ) |
| Acquisition of and capitalized premiums for life settlement contracts             |   |                                             | (17,453 | ) |   |   | — |   |
| Purchase of property and equipment                                                |   |                                             | (15,402 | ) |   |   | (766 | ) |
| Net cash used in investing activities                                        |   |                                             | (24,090 | ) |   |   | (82,609 | ) |
| Cash flows from financing activities:                                             |   |                                             |    |   |   |   |   |   |
| Repurchase agreements, net                                                        |   |                                             | (95,251 | ) |   |   | 53,675 |   |
| Revolving credit facility borrowing                                               |   |                                             | 98,200  |   |   |   | — |   |
| Secured loan agreement                                                            |   |                                             | 10,800  |   |   |   | — |   |
| Term loan payment                                                                 |   |                                             | (6,667  | ) |   |   | (3,333 | ) |
| Capital contribution to subsidiary                                                |   |                                             | 8,965   |   |   |   | — |   |
| Stock option exercise and other                                                   |   |                                             | 857     |   |   |   | 283 |   |
| Dividends distributed on common stock                                             |   |                                             | (4,761  | ) |   |   | (3,559 | ) |
| Debt financing fess                                                               |   |                                             | (1,394  | ) |   |   | — |   |
| Net cash provided by financing activities                                         |   |                                             | 10,749  |   |   |   | 47,066 |   |
| Effect of exchange rate changes on cash                                           |   |                                             | 2,119   |   |   |   | (4,800 | ) |
| Net increase (decrease) in cash and cash equivalents                              |   |                                             | 44,109  |   |   |   | (18,368 | ) |
| Cash and cash equivalents, beginning of the period                                |   |                                             | 201,949 |   |   |   | 233,810 |   |
| Cash and cash equivalents, end of the period                                      |   | $                                                | 246,058 |   |   | $ | 215,442 |   |
| Supplemental Cash Flow Information                                                |   |                                             |    |   |   |   |   |   |
| Income tax payments                                                               |   | $                                                | 57      |   |   | $ | 423 |   |
| Interest payments on debt                                                         |   |                                             | 3,151   |   |   |   | 2,563 |   |

----

|   | 1. | Basis of Reporting |
|--------|----|--------------------|

|   | 2. | Recent Accounting Pronouncements |
|--------|----|----------------------------------|

----

|   | 3. | Investments |
|--------|----|-------------|

| (Amounts in Thousands)        |   | Original oramortized cost |      |   | Grossunrealizedgains |   |   | Grossunrealizedlosses |   |   | Marketvalue |   |
|-----------------------------------------|--------|-------------------------------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|-------------|--------|
| Preferred stock                         |   | $                                   | 4,516     |   |                 |   | 177    |                  |   |   | (52         | )      |   |   | 4,641 |   |
| Common stock                            |   |                                | 13,257    |   |                 |   | 1,319  |                  |   |   | (2,260      | )      |   |   | 12,316 |   |
| U.S. treasury securities                |   |                                | 85,202    |   |                 |   | 1,394  |                  |   |   | (2,019      | )      |   |   | 84,577 |   |
| U.S. government agencies                |   |                                | 5,978     |   |                 |   | 594    |                  |   |   | —     |   |   |   | 6,572 |   |
| Municipal bonds                         |   |                                | 72,968    |   |                 |   | 711    |                  |   |   | (1,502      | )      |   |   | 72,177 |   |
| Corporate bonds:                        |   |                                |      |   |                 |   |   |                  |   |   |        |   |   |   |   |   |
| Finance                                 |   |                                | 412,159   |   |                 |   | 11,083 |                  |   |   | (8,636      | )      |   |   | 414,606 |   |
| Industrial                              |   |                                | 55,024    |   |                 |   | 2,732  |                  |   |   | (4          | )      |   |   | 57,752 |   |
| Utilities                               |   |                                | 41,213    |   |                 |   | 1,852  |                  |   |   | (606        | )      |   |   | 42,459 |   |
| Commercial mortgage backed securities   |   |                                | 1,784     |   |                 |   | 97     |                  |   |   | —     |   |   |   | 1,881 |   |
| Residential mortgage backed securities: |   |                                |      |   |                 |   |   |                  |   |   |        |   |   |   |   |   |
| Agency backed                           |   |                                | 503,802   |   |                 |   | 16,697 |                  |   |   | (2,053      | )      |   |   | 518,446 |   |
| Non-agency backed                       |   |                                | 7,815     |   |                 |   | 721    |                  |   |   | (3          | )      |   |   | 8,533 |   |
| Asset-backed securities                 |   |                                | 1,277     |   |                 |   | 45     |                  |   |   | —     |   |   |   | 1,322 |   |
|           |   | $                                   | 1,204,995 |   |                 |   | 37,422 |                  |   |   | (17,135     | )      |   |   | 1,225,282 |   |

| (Amounts in Thousands) |   | AmortizedCost |      |   | Fair Value |   |
|----------------------------------|--------|---------------|-----------|--------|-----------------|--------|
| Due in one year or less          |   | $             | 4,631     |   |            | $      | 4,841 |   |
| Due after one through five years |   |          | 129,634   |   |            |   | 131,102 |   |
| Due after five through ten years |   |          | 420,115   |   |            |   | 425,334 |   |
| Due after ten years              |   |          | 118,164   |   |            |   | 116,865 |   |
| Mortgage backed securities       |   |          | 514,678   |   |            |   | 530,183 |   |
| Total fixed maturities           |   | $             | 1,187,222 |   |            | $      | 1,208,325 |   |

| (Amounts in Thousands)                                                                    |   | 2011   |    |   | 2010   |   |
|-------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Fixed maturities                                                                          |   | $      | 13,674  |   |   | $      | 11,704 |   |
| Equity securities                                                                         |   |   | 166     |   |   |   | 327 |   |
| Cash and short term investments                                                           |   |   | 606     |   |   |   | 845 |   |
| Interest on note receivable – related party                                         |   |   | — |   |   |   | 845 |   |
|                                                                                      |   |   | 14,446  |   |   |   | 13,721 |   |
| Less:                                                                                     |   |   |    |   |   |   |   |   |
| Investment expenses and interest expense on securities sold under agreement to repurchase |   |   | 254     |   |   |   | 122 |   |
|                                                                                      |   | $      | 14,192  |   |   | $      | 13,599 |   |

----

| (Amounts in Thousands)    |   | 2011   |    |   | 2010   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|
| Equity securities         |   | $      | — |   |   | $      | 5,138 |   |
| Fixed maturity securities |   |   | — |   |   |   | — |   |
|                 |   | $      | — |   |   | $      | 5,138 |   |

|                                    |   | Less Than 12 Months |    |   | 12 Months or More |   |    | Total                    |   |
|-----------------------------------------|--------|------------------------------------|---------|--------|----------------------------------|--------|---------|--------------------------|--------|
| (Amounts in Thousands)        |   | FairMarketValue                    |    |   | UnrealizedLosses                 |   |    | No. ofPositionsHeld |   |   | FairMarketValue |   |   | UnrealizedLosses |   |   | No. ofPositionsHeld |   |   | FairMarketValue |   |   | UnrealizedLosses |   |
| Common and preferred stock              |   | $                                  | 3,744   |   |                             | $      | (1,059  | )                        |   |   | 7 |   |   | $ | 5,002 |   |   | $ | (1,253 | ) |   |   | 49 |   |   | $ | 8,746 |   |   | $ | (2,312 | ) |
| U.S. treasury securities                |   |                               | 49,760  |   |                             |   | (2,019  | )                        |   |   | 8 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 49,760 |   |   |   | (2,019 | ) |
| Municipal bonds                         |   |                               | 40,548  |   |                             |   | (1,502  | )                        |   |   | 14 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 40,548 |   |   |   | (1,502 | ) |
| Corporate bonds:                        |   |                               |    |   |                             |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Finance                                 |   |                               | 58,304  |   |                             |   | (1,452  | )                        |   |   | 16 |   |   |   | 165,018 |   |   |   | (7,184 | ) |   |   | 24 |   |   |   | 223,322 |   |   |   | (8,636 | ) |
| Industrial                              |   |                               | 3,279   |   |                             |   | (4      | )                        |   |   | 2 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,279 |   |   |   | (4 | ) |
| Utilities                               |   |                               | 14,018  |   |                             |   | (606    | )                        |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 14,018 |   |   |   | (606 | ) |
| Commercial Mortgage backed securities   |   |                               | 144     |   |                             |   | — |                     |   |   | 1 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 144 |   |   |   | — |   |
| Residential mortgage backed securities: |   |                               |    |   |                             |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency backed                           |   |                               | 148,536 |   |                             |   | (2,053  | )                        |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 148,536 |   |   |   | (2,053 | ) |
| Non-agency backed                       |   |                               | — |   |                             |   | — |                     |   |   | — |   |   |   | 27 |   |   |   | (3 | ) |   |   | 1 |   |   |   | 27 |   |   |   | (3 | ) |
| Total temporarily impaired securities   |   | $                                  | 318,333 |   |                             | $      | (8,695  | )                        |   |   | 54 |   |   | $ | 170,047 |   |   | $ | (8,440 | ) |   |   | 74 |   |   | $ | 488,380 |   |   | $ | (17,135 | ) |

----

|   | 4. | Fair Value of Financial Instruments |
|--------|----|-------------------------------------|

| (Amounts in Thousands)                                            |   | Total  |      |   | Level 1 |   |    | Level 2 |   |   | Level 3   |   |
|-------------------------------------------------------------------|--------|--------|-----------|--------|---------|--------|---------|---------|--------|--------|-----------|--------|
| Assets:                                                           |   |   |      |   |    |   |    |    |   |   |      |   |
| U.S. treasury securities                                          |   | $      | 84,577    |   |    | $      | 84,577  |    |   | $      | —   |   |   | $ | — |   |
| U.S. government agencies                                          |   |   | 6,572     |   |    |   | — |    |   |   | 6,572     |   |   |   | — |   |
| Municipal bonds                                                   |   |   | 72,177    |   |    |   | — |    |   |   | 72,177    |   |   |   | — |   |
| Corporate bonds:                                                  |   |   |      |   |    |   |    |    |   |   |      |   |   |   |   |   |
| Finance                                                           |   |   | 414,606   |   |    |   | — |    |   |   | 414,606   |   |   |   | — |   |
| Industrial                                                        |   |   | 57,752    |   |    |   | — |    |   |   | 57,752    |   |   |   | — |   |
| Utilities                                                         |   |   | 42,459    |   |    |   | — |    |   |   | 42,459    |   |   |   | — |   |
| Commercial mortgage backed securities                             |   |   | 1,881     |   |    |   | — |    |   |   | 1,881     |   |   |   | — |   |
| Residential mortgage backed securities:                           |   |   |      |   |    |   |    |    |   |   |      |   |   |   |   |   |
| Agency backed                                                     |   |   | 518,446   |   |    |   | — |    |   |   | 518,446   |   |   |   | — |   |
| Non-agency backed                                                 |   |   | 8,533     |   |    |   | — |    |   |   | 8,533     |   |   |   | — |   |
| Asset-backed securities                                           |   |   | 1,322     |   |    |   | — |    |   |   | 1,322     |   |   |   | — |   |
| Equity securities                                                 |   |   | 16,957    |   |    |   | 16,957  |    |   |   | —   |   |   |   | — |   |
| Short term investments                                            |   |   | 23,365    |   |    |   | 23,365  |    |   |   | —   |   |   |   | — |   |
| Other investments                                                 |   |   | 22,512    |   |    |   | — |    |   |   | —   |   |   |   | 22,512 |   |
| Life settlement contracts                                         |   |   | 63,686    |   |    |   | — |    |   |   | —   |   |   |   | 63,686 |   |
|                                                              |   | $      | 1,334,845 |   |    | $      | 124,899 |    |   | $      | 1,123,748 |   |   | $ | 86,198 |   |
| Liabilities:                                                      |   |   |      |   |    |   |    |    |   |   |      |   |   |   |   |   |
| Equity securities sold but not yet purchased, market              |   | $      | 236       |   |    | $      | 236     |    |   | $      | —   |   |   | $ | — |   |
| Fixed maturity securities sold but not yet purchased, market      |   |   | 3,719     |   |    |   | — |    |   |   | 3,719     |   |   |   | — |   |
| Securities sold under agreements to repurchase, at contract value |   |   | 252,366   |   |    |   | — |    |   |   | 252,366   |   |   |   | — |   |
|                                                         |   | $      | 256,321   |   |    | $      | 236     |    |   | $      | 256,085   |   |   | $ | — |   |

----

| (Amounts in Thousands) |   | Balance as ofDecember 31,2010 |   |   | Net income |   |   | Othercomprehensiveincome |   |   | Purchasesandissuances |   |   | Sales andsettlements |   |   | Nettransfersinto (out of)Level 3 |   |    | Balance as ofMarch 31,2011 |   |
|-----------------------------|--------|-----------------------------------------|--------|--------|-----------------|--------|--------|--------------------------|--------|--------|-----------------------|--------|--------|---------------------------|--------|--------|-------------------------------------------------|--------|---------|-------------------------------------------|--------|
| Other investments           |   | $                                       | 21,514 |   |            | $      | 661    |                     |   | $      | 498                   |   |   | $                         | 80     |   |                                            | $      | (241    | )                                         |   | $ | — |   |   | $ | 22,512 |   |
| Life settlement contracts   |   |                                    | 22,155 |   |            |   | 24,120 |                     |   |   | —               |   |   |                      | 17,411 |   |                                            |   | — |                                      |   |   | — |   |   |   | 63,686 |   |
| Total                       |   | $                                       | 43,669 |   |            | $      | 24,781 |                     |   | $      | 498                   |   |   | $                         | 17,491 |   |                                            | $      | (241    | )                                         |   | $ | — |   |   | $ | 86,198 |   |

| (Amounts in Thousands) |   | Balance as ofDecember 31,2009 |   |   | Net income |   |    | Othercomprehensiveincome |   |   | Purchasesandissuances |   |   | Sales andsettlements |    |   | Nettransfersinto (out of)Level 3 |   |   | Balance as ofMarch 31,2010 |   |
|------------------------|--------|------------------------------------|--------|--------|------------|--------|---------|--------------------------|--------|--------|-----------------------|--------|--------|----------------------|---------|--------|----------------------------------|--------|--------|----------------------------|--------|
| Other investments      |   | $                                  | 12,746 |   |       | $      | 277     |                     |   | $      | 981                   |   |   | $                    | — |   |                             | $      | 15     |                       |   | $ | — |   |   | $ | 14,019 |   |
| Derivatives            |   |                               | (1,893 | )      |       |   | — |                     |   |   | —               |   |   |                 | — |   |                             |   | 1,540  |                       |   |   | — |   |   |   | (353 | ) |
| Total                  |   | $                                  | 10,853 |   |       | $      | 277     |                     |   | $      | 981                   |   |   | $                    | — |   |                             | $      | 1,555  |                       |   | $ | — |   |   | $ | 13,666 |   |

|   | • | Equity and Fixed Income Investments:   Fair value disclosures for these investments are disclosed above in this note. The carrying values of cash, short term investments and investment income accrued approximate their fair values; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Premiums Receivable:   The carrying values reported in the accompanying balance sheets for these financial instruments approximate their fair values due to the short term nature of the asset; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Subordinated Debentures and Debt:   The carrying values reported in the accompanying balance sheets for these financial instruments approximate fair value. Fair value was estimated using projected cash flows, discounted at rates currently being offered for similar notes. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 5. | Debt |
|--------|----|------|

|                                |   | Aggregate      |    |   |           |   |   |          |   |          |    |         |      |
|-------------------------------------|--------|----------------|---------|--------|----------------|--------|--------|---------------|--------|---------------|---------|--------------|-----------|
|                                |   | Liquidation    |    |   | Aggregate      |   |   |          |   |          |    | Per          |      |
|                                |   | Amount of |    |   | Liquidation    |   |   | Aggregate     |   |          |    | Annum        |      |
| (Amounts in Thousands)    |   | Trust          |    |   | Amount of |   |   | Principal     |   | Stated        |    | Interest     |      |
|                                |   | Preferred      |    |   | Common         |   |   | Amount        |   | Maturity      |    | Rate of |      |
| Name of Trust             |   | Securities     |    |   | Securities     |   |   | of Notes |   | of Notes |    | Notes        |      |
| AmTrust Capital Financing Trust I   |   | $              | 25,000  |   |           | $      | 774    |          |   | $             | 25,774  |         | 3/17/2035 |   |   | 8.275 | % (1) |
| AmTrust Capital Financing Trust II  |   |           | 25,000  |   |           |   | 774    |          |   |          | 25,774  |         | 6/15/2035 |   |   | 7.710 | (1) |
| AmTrust Capital Financing Trust III |   |           | 30,000  |   |           |   | 928    |          |   |          | 30,928  |         | 9/15/2036 |   |   | 8.830 | (2) |
| AmTrust Capital Financing Trust IV  |   |           | 40,000  |   |           |   | 1,238  |          |   |          | 41,238  |         | 3/15/2037 |   |   | 7.930 | (3) |
| Total trust preferred securities    |   | $              | 120,000 |   |           | $      | 3,714  |          |   | $             | 123,714 |         |      |   |   |   |   |

|   | (1) | The interest rate will change to three-month LIBOR plus 3.40% after the tenth anniversary in 2015. |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (2)  | The interest rate will change to LIBOR plus 3.30% after the fifth anniversary in 2011. |
|--------|-----------|----------------------------------------------------------------------------------------|

|   | (3) | The interest rate will change to LIBOR plus 3.00% after the fifth anniversary in 2012. |
|--------|-----|----------------------------------------------------------------------------------------|

----

| (Amounts in Thousands)    |   | 2011   |    |   | 2012   |   |    | 2013   |   |   | 2014    |   |   | 2015   |    |   | Thereafter |   |
|---------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|------------|--------|
| Junior subordinated debt  |   | $      | — |   |   | $      | — |   |   | $      | — |   |   | $      | — |   |       | $      | — |   |   | $ | 123,714 |   |
| Revolving credit facility |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 98,200  |   |       |   | — |   |   |   | — |   |
| Secured loan              |   |   | 782     |   |   |   | 977     |   |   |   | 1,021   |   |   |   | 1,068   |   |       |   | 1,116 |   |   |   | 5,836 |   |
| Promissory note           |   |   | 7,201   |   |   |   | 7,362   |   |   |   | — |   |   |   | — |   |       |   | — |   |   |   | — |   |
| Total                     |   | $      | 7,983   |   |   | $      | 8,339   |   |   | $      | 1,021   |   |   | $      | 99,268  |   |       | $      | 1,116 |   |   | $ | 129,550 |   |

----

|   | 6. | Acquisition Costs and Other Underwriting Expenses |
|--------|----|---------------------------------------------------|

| (Amounts in Thousands)                             |   | 2011   |   |   | 2010   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Policy acquisition expenses                        |   | $      | 46,817 |   |   | $      | 25,291 |   |
| Salaries and benefits                              |   |   | 27,922 |   |   |   | 25,353 |   |
| Other insurance general and administrative expense |   |   | 6,495  |   |   |   | 10,702 |   |
|                                               |   | $      | 81,234 |   |   | $      | 61,346 |   |

|   | 7. | Earnings Per Share |
|--------|----|--------------------|

| (Amounts in thousands except per share)                                                        |   | 2011   |   |   | 2010   |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Basic earnings per share:                                                                      |   |   |   |   |   |   |
| Net income attributable to AmTrust Financial Services, Inc. shareholders                       |   | $      | 45,183 |   |   | $      | 38,700 |   |
| Less: Net income allocated to participating securities and redeemable non-controlling interest |   |   | 25     |   |   |   | — |   |
| Net income allocated to AmTrust Financial Services, Inc. common shareholders                   |   | $      | 45,158 |   |   | $      | 38,700 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding – basic                                       |   |   | 59,603 |   |   |   | 59,333 |   |
| Less: Weighted average participating shares outstanding                                        |   |   | 38     |   |   |   | — |   |
| Weighted average common shares outstanding – basic                                       |   |   | 59,565 |   |   |   | 59,333 |   |
| Net income per AmTrust Financial Services, Inc. common shares - basic                          |   | $      | 0.76   |   |   | $      | 0.65 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Diluted earnings per share:                                                                    |   |   |   |   |   |   |   |   |
| Net income attributable to AmTrust Financial Services, Inc. shareholders                       |   | $      | 45,183 |   |   | $      | 38,700 |   |
| Less: Net income allocated to participating securities and redeemable non-controlling interest |   |   | 25     |   |   |   | — |   |
| Net income allocated to AmTrust Financial Services, Inc. common shareholders                   |   | $      | 45,158 |   |   | $      | 38,700 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding – basic                                       |   |   | 59,565 |   |   |   | 59,333 |   |
| Plus: Dilutive effect of stock options, other                                                  |   |   | 1,167  |   |   |   | 854 |   |
| Weighted average common shares outstanding – dilutive                                    |   |   | 60,732 |   |   |   | 60,187 |   |
| Net income per AmTrust Financial Services, Inc. common shares - diluted                        |   | $      | 0.74   |   |   | $      | 0.64 |   |

----

|   | 8. | Share Based Compensation |
|--------|----|--------------------------|

|                                                             |   | 2011   |   |   | 2010                               |   |
|------------------------------------------------------------------|--------|--------|--------|--------|------------------------------------|--------|
| (Amounts in Thousands Except per Share) |   | Shares |   |   | WeightedAverageExercise Price |   |   | Shares |   |   | WeightedAverageExercise Price |   |
| Outstanding at beginning of period                               |   |   | 4,127  |   |                               | $      | 10.46 |   |   |   | 4,168 |   |   | $ | 10.12 |   |
| Granted                                                          |   |   | 175    |   |                               |   | 14.98 |   |   |   | 54 |   |   |   | 13.75 |   |
| Exercised                                                        |   |   | (76    | )      |                               |   | 10.93 |   |   |   | (38 | ) |   |   | 7.50 |   |
| Cancelled or terminated                                          |   |   | (24    | )      |                               |   | 12.41 |   |   |   | (10 | ) |   |   | 11.51 |   |
| Outstanding end of period                                        |   |   | 4,202  |   |                               | $      | 10.63 |   |   |   | 4,174 |   |   | $ | 10.18 |   |

----

|   | 9. | Comprehensive Income and Shareholder Equity |
|--------|----|---------------------------------------------|

|                                |   | Three Months Ended March 31, |   |
|-------------------------------------|--------|--------------------------------------------------|--------|
| (Amounts in Thousands)              |   | 2011                                             |   |   | 2010 |   |
| Net income attributable to AmTrust  |   | $                                                | 45,183 |   |   | $ | 38,700 |   |
| Unrealized holding gain (loss) |   |                                             | 3,272  |   |   |   | 7,997 |   |
| Reclassification adjustment         |   |                                             | 1,253  |   |   |   | 4,155 |   |
| Foreign currency translation        |   |                                             | 3,840  |   |   |   | (5,547 | ) |
| Comprehensive Income                |   | $                                                | 53,548 |   |   | $ | 45,305 |   |

| (Amounts in thousands)                         |   | AmTrust |    |   | Non-ControllingInterests |   |    | Total  |   |
|----------------------------------------------------------|--------|---------|---------|--------|--------------------------|--------|---------|--------|--------|
| Beginning Balance, January 1, 2011                       |   | $       | 716,514 |   |                     | $      | 21,800  |   |   | $ | 738,314 |   |
| Net income                                               |   |    | 45,183  |   |                     |   | 6,138   |   |   |   | 51,321 |   |
| Unrealized holding gains  and reclassification |   |    | 4,525   |   |                     |   | — |   |   |   | 4,525 |   |
| Foreign currency translation                             |   |    | 3,840   |   |                     |   | — |   |   |   | 3,840 |   |
| Comprehensive income                                     |   |    | 53,548  |   |                     |   | 6,138   |   |   |   | 59,686 |   |
| Capital contribution                                     |   |    | — |   |                     |   | 8,965   |   |   |   | 8,965 |   |
| Dividends                                                |   |    | (4,769  | )      |                     |   | — |   |   |   | (4,769 | ) |
| Share exercises and compensation, other                  |   |    | 2,316   |   |                     |   | — |   |   |   | 2,316 |   |
| Ending Balance, March 31, 2011                           |   | $       | 767,609 |   |                     | $      | 36,903  |   |   | $ | 804,512 |   |

|   | 10. | Income Taxes |
|--------|-----|--------------|

|                                                                                              |   | Three Months Ended March 31, |   |
|---------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
| (Amounts in Thousands)                                                                            |   | 2011                                             |   |   | 2010 |   |
| Income before provision for income taxes, equity in earnings of unconsolidated subsidiaries       |   | $                                                | 60,540 |   |   | $ | 42,008 |   |
| Equity in earnings of unconsolidated subsidiaries                                                 |   |                                             | 3,123  |   |   |   | 11,860 |   |
| Non-controlling interest                                                                          |   |                                             | (6,138 | ) |   |   | — |   |
|                                                                                              |   | $                                                | 57,525 |   |   | $ | 53,868 |   |
|                                                                                              |   |                                             |   |   |   |   |   |   |
| Income taxes at statutory rates                                                                   |   | $                                                | 20,133 |   |   | $ | 18,854 |   |
| Effect of income not subject to U.S. taxation                                                     |   |                                             | (7,643 | ) |   |   | (3,244 | ) |
| Other, net                                                                                        |   |                                             | (148   | ) |   |   | (442 | ) |
| Provision for income taxes as shown on the condensed consolidated statements of  income |   | $                                                | 12,342 |   |   | $ | 15,168 |   |
| GAAP effective tax rate                                                                           |   |                                             | 21.5   | % |   |   | 28.2 | % |

----

|   | 11. | Related Party Transactions |
|--------|-----|----------------------------|

----

| (Amounts in Thousands)   |   | March 31, 2011 |     |   | December 31, 2010 |   |
|------------------------------------|--------|--------------------------|----------|--------|-----------------------------|--------|
| Assets and liabilities:            |   |                     |     |   |                        |   |
| Reinsurance recoverable            |   | $                        | 405,297  |   |                        | $      | 386,932 |   |
| Prepaid reinsurance premium        |   |                     | 296,677  |   |                        |   | 283,899 |   |
| Ceded reinsurance premiums payable |   |                     | (118,876 | )      |                        |   | (95,629 | ) |
| Note payable                       |   |                     | (167,975 | )      |                        |   | (167,975 | ) |

|                                                              |   | Three Months Ended March 31, |     |
|-------------------------------------------------------------------|--------|--------------------------------------------------|----------|
| (Amounts in Thousands)                                            |   | 2011                                             |     |   | 2010 |   |
| Results of operations:                                            |   |                                             |     |   |   |   |
| Premium written – ceded                                     |   | $                                                | (126,722 | ) |   | $ | (114,092 | ) |
| Change in unearned premium – ceded                |   |                                             | 12,786   |   |   |   | 11,689 |   |
| Earned premium – ceded                            |   | $                                                | (113,936 | ) |   | $ | (102,403 | ) |
|                                                              |   |                                             |     |   |   |   |   |   |
| Ceding commission on premium written                              |   | $                                                | 39,725   |   |   | $ | 34,980 |   |
| Ceding commission – deferred                      |   |                                             | (3,916   | ) |   |   | (2,973 | ) |
| Ceding commission – earned                        |   | $                                                | 35,809   |   |   | $ | 32,007 |   |
|                                                              |   |                                             |     |   |   |   |   |   |
| Incurred loss and loss adjustment expense – ceded |   | $                                                | 82,107   |   |   | $ | 71,172 |   |
| Interest expense on collateral loan                               |   |                                             | 486      |   |   |   | 476 |   |

----

|   | (i) | the Company provides ACAC and its affiliates information technology development services at a price of cost plus 20%. In addition, as a new system developed by the Company is implemented and ACAC or its affiliates begin using the system in its operations, the Company is entitled to an additional fee for use of the systems in the amount of 1.25% of gross premiums of ACAC and its affiliates. The Company recorded approximately $731 and $215 of fee income for the three months ended March 31, 2011 and 2010, respectively, related to this agreement. The terms and conditions of the above are subject to regulatory approval. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the Company manages the assets of ACAC and its subsidiaries for an annual fee equal to 0.20% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for the preceding quarter is $1,000,000 or less and 0.15% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for that quarter is more than $1,000,000. As a result of this agreement, the Company earned approximately $399 and $141 of investment management fees for the three months ended March 31, 2011 and 2010, respectively. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | ACAC is providing the Company with access to its agency sales force to distribute the Company’s products, and using its best efforts to have said agency sales team appointed as the Company’s agents. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | ACAC will grant the Company a right of first refusal to purchase or to reinsure commercial auto insurance business acquired from GMAC in connection with the Acquisition. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | the Company, effective March 1, 2010, reinsures 10% of the net premiums of the GMAC Business, pursuant to a 50% quota share reinsurance agreement (“Personal Lines Quota Share”) with the GMAC Insurers, as cedents, and the Company, American Capital Partners Re, Ltd., a Bermuda reinsurer that is a wholly-owned indirect subsidiary of the Trust, and Maiden Insurance Company, Ltd., as reinsurers. The Personal Lines Quota Share provides that the reinsurers, severally, in accordance with their participation percentages, shall receive 50% of the net premium of the GMAC Insurers and assume 50% of the related net losses.  The Company has a 20% participation in the Personal Line Quota Share, by which it receives 10% of net premiums of the personal lines business. The Personal Lines Quota Share has an initial term of three years and shall renew automatically for successive three-year terms unless terminated by written notice not less than nine months prior to the expiration of the current term. Notwithstanding the foregoing, the Company’s participation in the Personal Lines Quota Share may be terminated by the GMAC Insurers on 60 days written notice in the event the Company becomes insolvent, is placed into receivership, its financial condition is impaired by 50% of the amount of its surplus at the inception of the Personal Lines Quota Share or latest anniversary, whichever is greater, is subject to a change of control, or ceases writing new and renewal business. The GMAC Insurers also may terminate the agreement on nine months written notice following the effective date of an initial public offering or private placement of stock by ACAC or a subsidiary. The Company may terminate its participation in the Personal Lines Quota Share on 60 days written notice in the event the GMAC Insurers are subject to a change of control, cease writing new and renewal business, effect a reduction in their net retention without the Company’s consent or fail to remit premium as required by the terms of the Personal Lines Quota Share. The Personal Lines Quota Share provides that the reinsurers pay a provisional ceding commission equal to 32.5% of ceded earned premium, net of premiums ceded by the personal lines companies for inuring reinsurance, subject to adjustment. The ceding commission is subject to adjustment to a maximum of 34.5% if the loss ratio for the reinsured business is 60.5% or less and a minimum of 30.5% if the loss ratio is 64.5% or higher. The Personal Lines Quota Share is subject to a premium cap that limits the premium that could be ceded by the GMAC Insurers to TIC to $121,000 during calendar year 2011 to the extent TIC were to determine, in good faith, that it could not assume additional premium. The premium cap increases by 10% per annum thereafter. As a result of this agreement, the Company assumed $25,600 and $8,700 of business from the GMAC Insurers during the three months ended March 31, 2011 and 2010, respectively. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

| (Amounts in thousands, except Life Settlement Contracts) Remaining life expectancy as of March 31, 2011 |   | Number of LifeSettlementContracts |    |   | Fair Value |   |    | Face Value |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|--------|-----------------|--------|---------|-----------------|--------|
| 0-1                                                                                                                                                                           |   |                                        | — |   |            |   | — |            |   |   | — |   |
| 1-2                                                                                                                                                                           |   |                                        | — |   |            |   | — |            |   |   | — |   |
| 2-3                                                                                                                                                                           |   |                                        | — |   |            |   | — |            |   |   | — |   |
| 3-4                                                                                                                                                                           |   |                                        | — |   |            |   | — |            |   |   | — |   |
| 4-5                                                                                                                                                                           |   |                                        | — |   |            |   | — |            |   |   | — |   |
| Thereafter                                                                                                                                                                    |   |                                        | 145     |   |            | $      | 63,686  |            |   | $ | 947,183 |   |
| Total                                                                                                                                                                         |   |                                        | 145     |   |            | $      | 63,686  |            |   | $ | 947,183 |   |

|  (Amounts in thousands) |   | Premiums Due onLife SettlementContracts |    |   | Premiums Dueon PremiumFinance Loans |   |    | Total  |   |
|----------------------------------------|--------|--------------------------------------------------------|---------|--------|----------------------------------------------------|--------|---------|--------|--------|
| 2011                                   |   | $                                                      | 10,074  |   |                                               | $      | 3,203   |   |   | $ | 13,277 |   |
| 2012                                   |   |                                                   | 13,049  |   |                                               |   | 5,041   |   |   |   | 18,090 |   |
| 2013                                   |   |                                                   | 14,886  |   |                                               |   | 5,543   |   |   |   | 20,429 |   |
| 2014                                   |   |                                                   | 15,893  |   |                                               |   | 5,972   |   |   |   | 21,864 |   |
| 2015                                   |   |                                                   | 16,595  |   |                                               |   | 6,431   |   |   |   | 23,026 |   |
| Thereafter                             |   |                                                   | 427,283 |   |                                               |   | 223,172 |   |   |   | 650,455 |   |
| Total                                  |   | $                                                      | 497,780 |   |                                               | $      | 249,362 |   |   | $ | 747,141 |   |

----

----

| (Amounts in Thousands)                                                   |   | SmallCommercialBusiness |    |   | Specialty Riskand ExtendedWarranty |   |    | SpecialtyProgram |   |   | PersonalLinesReinsurance |   |   | Corporateand Other |    |   | Total  |   |
|------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|----------------------------------------------|--------|---------|------------------|--------|--------|--------------------------|--------|--------|-------------------------|---------|--------|--------|--------|
| Three months ended March 31, 2011:                                                 |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |
| Gross written premium                                                              |   | $                       | 140,716 |   |                                         | $      | 227,748 |             |   | $      | 49,976                   |   |   | $                       | 25,587  |   |   | $      | — |   |   | $ | 444,027 |   |
|                                                                               |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net written premium                                                                |   |                    | 77,651  |   |                                         |   | 104,547 |             |   |   | 26,234                   |   |   |                    | 25,587  |   |   |   | — |   |   |   | 234,019 |   |
| Change in unearned premium                                                         |   |                    | (15,790 | )      |                                         |   | (19,970 | )                |   |   | 4,536                    |   |   |                    | (2,457  | )      |   |   | — |   |   |   | (33,681 | ) |
| Net earned premium                                                                 |   |                    | 61,861  |   |                                         |   | 84,577  |             |   |   | 30,770                   |   |   |                    | 23,130  |   |   |   | — |   |   |   | 200,338 |   |
|                                                                               |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Ceding commission - primarily related party                                   |   |                    | 18,325  |   |                                         |   | 12,899  |             |   |   | 4,460                    |   |   |                    | — |   |   |   | — |   |   |   | 35,684 |   |
|                                                                               |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Loss and loss adjustment expense                                                   |   |                    | (36,763 | )      |                                         |   | (57,424 | )                |   |   | (19,705                  | )      |   |                    | (14,804 | )      |   |   | — |   |   |   | (128,696 | ) |
| Acquisition costs and other underwriting expenses                                  |   |                    | (34,756 | )      |                                         |   | (26,648 | )                |   |   | (12,312                  | )      |   |                    | (7,518  | )      |   |   | — |   |   |   | (81,234 | ) |
|                                                                               |   |                    | (71,519 | )      |                                         |   | (84,072 | )                |   |   | (32,017                  | )      |   |                    | (22,322 | )      |   |   | — |   |   |   | (209,930) |   |
|                                                                               |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Underwriting income                                                                |   |                    | 8,667   |   |                                         |   | 13,404  |             |   |   | 3,213                    |   |   |                    | 808     |   |   |   |   |   |   |   | 26,092 |   |
| Service and fee income                                                        |   |                    | 5,241   |   |                                         |   | 16,506  |             |   |   | 4                        |   |   |                    | — |   |   |   | 3,438 |   |   |   | 25,189 |   |
| Investment income and realized gain (loss)                                         |   |                    | 5,750   |   |                                         |   | 5,515   |             |   |   | 2,603                    |   |   |                    | 739     |   |   |   | — |   |   |   | 14,607 |   |
| Other expenses                                                                     |   |                    | (7,312  | )      |                                         |   | (9,021  | )                |   |   | (2,431                   | )      |   |                    | (1,432  | )      |   |   | — |   |   |   | (20,196 | ) |
| Interest expense                                                                   |   |                    | (1,359  | )      |                                         |   | (1,677  | )                |   |   | (452                     | )      |   |                    | (266    | )      |   |   | — |   |   |   | (3,754 | ) |
| Foreign currency loss                                                              |   |                    | — |   |                                         |   | (284    | )                |   |   | —                  |   |   |                    | — |   |   |   | — |   |   |   | (284 | ) |
| Gain on life settlement contracts                                                  |   |                    | 6,837   |   |                                         |   | 8,436   |             |   |   | 2,273                    |   |   |                    | 1,340   |   |   |   | — |   |   |   | 18,886 |   |
| Provision for income taxes                                                         |   |                    | (3,634  | )      |                                         |   | (6,703  | )                |   |   | (1,062                   | )      |   |                    | (242    | )      |   |   | (701 | ) |   |   | (12,342 | ) |
| Equity in earnings of unconsolidated subsidiaries  – related party |   |                    | — |   |                                         |   | — |             |   |   | —                  |   |   |                    | — |   |   |   | 3,123 |   |   |   | 3,123 |   |
| Non-controlling interest                                                           |   |                    | (2,222  | )      |                                         |   | (2,742  | )                |   |   | (739                     | )      |   |                    | (435    | )      |   |   | — |   |   |   | (6,138 | ) |
| Net income attributable to AmTrust Financial Services, Inc.                        |   | $                       | 11,968  |   |                                         | $      | 23,434  |             |   | $      | 3,409                    |   |   | $                       | 512     |   |   | $      | 5,860 |   |   |  $ | 45,183 |   |

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| (Amounts in Thousands)                                        |   | SmallCommercialBusiness |    |   | Specialty Riskand ExtendedWarranty |   |    | SpecialtyProgram |   |   | PersonalLinesReinsurance |   |   | Corporateand Other |    |   | Total  |   |
|-------------------------------------------------------------------------|--------|-------------------------|---------|--------|----------------------------------------------|--------|---------|------------------|--------|--------|--------------------------|--------|--------|-------------------------|---------|--------|--------|--------|
| Three months ended March 31, 2010:                                      |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |
| Gross written premium                                                   |   | $                       | 122,702 |   |                                         | $      | 152,174 |             |   | $      | 54,655                   |   |   | $                       | 8,700   |   |   | $      | — |   |   | $ | 338,231 |   |
|                                                                    |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net written premium                                                     |   |                    | 61,438  |   |                                         |   | 86,049  |             |   |   | 33,227                   |   |   |                    | 8,700   |   |   |   | — |   |   |   | 189,414 |   |
| Change in unearned premium                                              |   |                    | (1,834  | )      |                                         |   | (34,285 | )                |   |   | 3,505                    |   |   |                    | (8,700  | )      |   |   | — |   |   |   | (41,314 | ) |
| Net earned premium                                                      |   |                    | 59,604  |   |                                         |   | 51,764  |             |   |   | 36,722                   |   |   |                    | — |   |   |   | — |   |   |   | 148,100 |   |
|                                                                    |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Ceding commission - primarily related party                        |   |                    | 21,226  |   |                                         |   | 7,903   |             |   |   | 3,119                    |   |   |                    | — |   |   |   | — |   |   |   | 32,248 |   |
|                                                                    |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Loss and loss adjustment expense                                        |   |                    | (35,088 | )      |                                         |   | (31,160 | )                |   |   | (23,573                  | )      |   |                    | — |   |   |   | — |   |   |   | (89,821 | ) |
| Acquisition costs and other underwriting expenses                       |   |                    | (34,181 | )      |                                         |   | (14,711 | )                |   |   | (12,454                  | )      |   |                    | — |   |   |   | — |   |   |   | (61,346 | ) |
|                                                                    |   |                    | (69,269 | )      |                                         |   | (45,871 | )                |   |   | (36,027                  | )      |   |                    | — |   |   |   | — |   |   |   | (151,167 | ) |
|                                                                    |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Underwriting income                                                     |   |                    | 11,561  |   |                                         |   | 13,796  |             |   |   | 3,824                    |   |   |                    | — |   |   |   | — |   |   |   | 29,181 |   |
|                                                                    |   |                    |    |   |                                         |   |    |             |   |   |                     |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Service and fee income                                                  |   |                    | 2,574   |   |                                         |   | 2,726   |             |   |   | —                  |   |   |                    | — |   |   |   | 2,666 |   |   |   | 7,966 |   |
| Investment income and realized gain (loss)                              |   |                    | 6,656   |   |                                         |   | 5,283   |             |   |   | 3,229                    |   |   |                    | 216     |   |   |   | — |   |   |   | 15,384 |   |
| Other expenses                                                          |   |                    | (2,192  | )      |                                         |   | (2,847  | )                |   |   | (1,016                   | )      |   |                    | (179    | )      |   |   | — |   |   |   | (6,234 | ) |
| Interest expense                                                        |   |                    | (1,257  | )      |                                         |   | (1,631  | )                |   |   | (582                     | )      |   |                    | (102    | )      |   |   | — |   |   |   | (3,572 | ) |
| Foreign currency loss                                                   |   |                    | — |   |                                         |   | (717    | )                |   |   | —                  |   |   |                    | — |   |   |   | — |   |   |   | (717 | ) |
| Provision for income taxes                                              |   |                    | (6,261  | )      |                                         |   | (5,998  | )                |   |   | (1,970                   | )      |   |                    | 24      |   |   |   | (963 | ) |   |   | (15,168 | ) |
| Equity in earnings of unconsolidated investment – related parties |   |                    | — |   |                                         |   | — |             |   |   | —                  |   |   |                    | — |   |   |   | 11,860 |   |   |   | 11,860 |   |
| Net income                                                              |   | $                       | 11,081  |   |                                         | $      | 10,612  |             |   | $      | 3,485                    |   |   | $                       | (41     | )      |   | $      | 13,563 |   |   |   | 38,700 |   |

| (Amounts in Thousands) |   | SmallCommercialBusiness |      |   | Specialty Riskand ExtendedWarranty |   |      | SpecialtyProgram |   |   | PersonalLinesReinsurance |   |   | Corporateand other |    |   | Total  |   |
|----------------------------------|--------|-------------------------|-----------|--------|----------------------------------------------|--------|-----------|------------------|--------|--------|--------------------------|--------|--------|--------------------|---------|--------|--------|--------|
| As of March 31, 2011:            |   |                    |      |   |                                         |   |      |             |   |   |                     |   |   |               |    |   |   |   |
| Fixed assets                     |   | $                       | 16,011    |   |                                         | $      | 19,753    |             |   | $      | 5,323                    |   |   | $                  | 3,137   |   |   | $      | — |   |   | $ | 44,224 |   |
| Goodwill and intangible assets   |   |                    | 86,632    |   |                                         |   | 92,963    |             |   |   | 14,955                   |   |   |               | — |   |   |   | — |   |   |   | 194,550 |   |
| Total assets                     |   |                    | 1,716,516 |   |                                         |   | 1,883,378 |             |   |   | 653,144                  |   |   |               | 167,808 |   |   |   | — |   |   |   | 4,420,846 |   |
|                             |   |                    |      |   |                                         |   |      |             |   |   |                     |   |   |               |    |   |   |   |   |   |   |   |   |   |
| As of December 31, 2010:         |   |                    |      |   |                                         |   |      |             |   |   |                     |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Fixed assets                     |   | $                       | 9,839     |   |                                         | $      | 13,386    |             |   | $      | 5,694                    |   |   | $                  | 1,970   |   |   | $      | — |   |   | $ | 30,889 |   |
| Goodwill and intangible assets   |   |                    | 87,001    |   |                                         |   | 95,737    |             |   |   | 15,088                   |   |   |               | — |   |   |   | — |   |   |   | 197,826 |   |
| Total assets                     |   |                    | 1,581,946 |   |                                         |   | 1,716,980 |             |   |   | 741,835                  |   |   |               | 141,692 |   |   |   | — |   |   |   | 4,182,453 |   |

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|   | · | Small Commercial Business.  We provide workers’ compensation, commercial package and other commercial insurance lines produced by wholesale agents, retail agents and brokers in the United States. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Specialty Risk and Extended Warranty. We provide coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods, in the United States, United Kingdom and Europe, and certain property, casualty and specialty liability risks in the United States and Europe, including general liability, employers’ liability and professional and medical liability. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Specialty Program. We write commercial insurance for homogeneous, narrowly defined classes of insureds, requiring an in-depth knowledge of the insured’s industry segment, through general and other wholesale agents. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Personal Lines Reinsurance. We reinsure 10% of the net premiums of the GMAC personal lines business, pursuant to a quota share reinsurance agreement (“Personal Lines Quota Share”) with the GMAC personal lines insurance companies. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Company                                                            |   | A.M.Best Rated |   | Coverage Type Offered                                                                                          |   | CoverageMarket                 |   | Domiciled     |
|--------------------------------------------------------------------|--------|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|---------------|
| Technology Insurance Company, Inc. (“TIC”)             |   | A (Excellent)       |   | Small commercial, middle market property & casualty, specialty risk & extended warranty and reinsurance for GMAC |   | United States                  |   | New Hampshire |
| Rochdale InsuranceCompany (“RIC”)                      |   | A (Excellent)       |   | Small commercial, middle market property & casualty and specialty risk & extended warranty                       |   | United States                  |   | New York      |
| Wesco Insurance Company (“WIC”)                        |   | A (Excellent)       |   | Small commercial, middle market property & casualty and specialty risk & extended warranty                       |   | United States                  |   | Delaware      |
| Associated Industries Insurance Company, Inc. (“AIIC”) |   | A (Excellent)       |   | Workers’ compensation                                                                                              |   | United States                  |   | Florida       |
| Milwaukee Casualty Insurance Company (“MCIC”)          |   | A (Excellent)       |   | Small Commercial Business                                                                                                |   | United States                  |   | Wisconsin     |
| Security National Insurance Company (“SNIC”)           |   | A (Excellent)       |   | Small Commercial Business                                                                                                |   | United States                  |   | Texas         |
| AmTrust Insurance Company of Kansas, Inc. (“AICK”)     |   | A (Excellent)       |   | Small Commercial Business                                                                                                |   | United States                  |   | Kansas        |
| AmTrust Lloyd’s Insurance Company (“ALIC”)  |   | A (Excellent)       |   | Small Commercial Business                                                                                                |   | United States                  |   | Texas         |
| AmTrust International Underwriters Limited (“AIU”)     |   | A (Excellent)       |   | Specialty Risk and Extended Warranty                                                                                     |   | EuropeanUnion                  |   | Ireland       |
| AmTrust Europe, Ltd. (“AEL”)                           |   | A (Excellent)       |   | Specialty Risk and Extended Warranty                                                                                     |   | EuropeanUnion                  |   | England       |
| AmTrust International Insurance Ltd. (“AII”)           |   | A (Excellent)       |   | Reinsurance for consolidated subsidiaries                                                                                |   | United Statesand EuropeanUnion |   | Bermuda       |

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|   | • | Product warranty registration and service — Our Specialty Risk and Extended Warranty business generates fee revenue for product warranty registration and claims handling services provided to unaffiliated third parties. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Servicing carrier — We act as a servicing carrier for the Alabama, Arkansas, Illinois, Indiana, Georgia and Kansas workers’ compensation assigned risk plans. In addition, we also offer claims adjusting and loss control services for fees to unaffiliated third parties. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Management services — We provide services to insurance consumers, traditional insurers and insurance producers by offering flexible and cost effective alternatives to traditional insurance tools in the form of various risk retention groups and captive management companies, as well as management of workers’ compensation and commercial property programs. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Installment and reinstatement fees — We recognize fee income associated with the issuance of workers’ compensation policies for installment fees, in jurisdictions where it is permitted and approved, and reinstatement fees, which are fees charged to reinstate a policy after it has been cancelled for non-payment, in jurisdictions where it is permitted and approved. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Broker services — We provide brokerage services to Maiden in connection with our reinsurance agreement for which we receive a fee. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Asset management services — We currently manage the investment portfolios of Maiden and ACAC for which we receive a management fee. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Information technology services — We provide information technology services to ACAC and its affiliates for a fee. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Policy acquisition expenses comprise commissions directly attributable to those agents, wholesalers or brokers that produce premiums written on our behalf. In most instances, we pay commissions based on collected premium, which reduces our credit risk exposure associated with producers in case a policyholder does not pay a premium. We pay state and local taxes, licenses and fees, assessments and contributions to various state guaranty funds based on our premiums or losses in each state. Surcharges that we may be required to charge and collect from insureds in certain jurisdictions are recorded as accrued liabilities, rather than expense. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Salaries and benefits expenses are those salaries and benefits expenses for employees that are directly involved in the origination, issuance and maintenance of policies, claims adjustment and accounting for insurance transactions. We classify salaries and benefits associated with employees that are involved in fee generating activities as other expenses. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | General and administrative expenses are comprised of other costs associated with our insurance activities, such as federal excise tax, postage, telephones and internet access charges, as well as legal and auditing fees and board and bureau charges. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                   |   | Three Months Ended March 31, |    |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                                   |   | 2011                                             |    |   | 2010 |   |
|                                                                                                   |   | (Amounts in Thousands)                           |    |
| Gross written premium                                                                                  |   | $                                                | 444,027 |   |   | $ | 338,231 |   |
|                                                                                                   |   |                                             |    |   |   |   |   |   |
| Net written premium                                                                                    |   | $                                                | 234,019 |   |   | $ | 189,414 |   |
| Change in unearned premium                                                                             |   |                                             | (33,681 | ) |   |   | (41,314 | ) |
| Net earned premium                                                                                     |   |                                             | 200,338 |   |   |   | 148,100 |   |
| Ceding commission – primarily related party                                                      |   |                                             | 35,684  |   |   |   | 32,248 |   |
| Service and fee income (related parties $3,439; $2,666)                                                |   |                                             | 25,189  |   |   |   | 7,966 |   |
| Net investment income                                                                                  |   |                                             | 14,192  |   |   |   | 13,599 |   |
| Net realized gain on investments                                                                       |   |                                             | 415     |   |   |   | 1,785 |   |
| Total revenues                                                                                         |   |                                             | 275,818 |   |   |   | 203,698 |   |
|                                                                                                   |   |                                             |    |   |   |   |   |   |
| Loss and loss adjustment expense                                                                       |   |                                             | 128,696 |   |   |   | 89,821 |   |
| Acquisition costs and other underwriting expenses                                                      |   |                                             | 81,234  |   |   |   | 61,346 |   |
| Other                                                                                                  |   |                                             | 20,196  |   |   |   | 6,234 |   |
| Total expenses                                                                                         |   |                                             | 230,126 |   |   |   | 157,401 |   |
| Income before other income (expense), income taxes and equity earnings of unconsolidated subsidiaries  |   |                                             | 45,692  |   |   |   | 46,297 |   |
|                                                                                                   |   |                                             |    |   |   |   |   |   |
| Other income (expense):                                                                                |   |                                             |    |   |   |   |   |   |
| Foreign currency loss                                                                                  |   |                                             | (284    | ) |   |   | (717 | ) |
| Interest expense                                                                                       |   |                                             | (3,754  | ) |   |   | (3,572 | ) |
| Gain on acquisition of life settlement contracts                                                       |   |                                             | 18,886  |   |   |   | — |   |
| Total other income (expense)                                                                           |   |                                             | 14,848  |   |   |   | (4,289 | ) |
| Income before income taxes and equity in earnings of unconsolidated subsidiaries                       |   |                                             | 60,540  |   |   |   | 42,008 |   |
|                                                                                                   |   |                                             |    |   |   |   |   |   |
| Provision for income taxes                                                                             |   |                                             | (12,342 | ) |   |   | (15,168 | ) |
| Income before equity in earnings of unconsolidated subsidiaries and non-controlling interest |   |                                             | 48,198  |   |   |   | 26,840 |   |
| Equity in earnings of unconsolidated subsidiaries - related parties                                    |   |                                             | 3,123   |   |   |   | 11,860 |   |
| Net income                                                                                             |   |                                             | 51,321  |   |   |   | 38,700 |   |
| Non-controlling interest                                                                               |   |                                             | (6,138  | ) |   |   | — |   |
| Net income attributable to AmTrust Financial Services, Inc.                                            |   | $                                                | 45,183  |   |   | $ | 38,700 |   |
|                                                                                                   |   |                                             |    |   |   |   |   |   |
| Key measures:                                                                                          |   |                                             |    |   |   |   |   |   |
| Net loss ratio                                                                                         |   |                                             | 64.2    | % |   |   | 60.6 | % |
| Net expense ratio                                                                                      |   |                                             | 22.7    | % |   |   | 19.6 | % |
| Net combined ratio                                                                                     |   |                                             | 87.0    | % |   |   | 80.3 | % |

----

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|                                                            |   | Three Months Ended March 31, |    |
|-----------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                            |   | 2011                                             |    |   | 2010 |   |
|                                                            |   | (Amounts in Thousands)                 |    |
| Gross written premium                                           |   | $                                                | 140,716 |   |   | $ | 122,702 |   |
|                                                            |   |                                             |    |   |   |   |   |   |
| Net written premium                                             |   | $                                                | 77,651  |   |   | $ | 61,438 |   |
| Change in unearned premium                                      |   |                                             | (15,790 | ) |   |   | (1,834 | ) |
| Net earned premium                                              |   |                                             | 61,861  |   |   |   | 59,604 |   |
| Ceding commission revenue – primarily related party       |   |                                             | 18,325  |   |   |   | 21,226 |   |
| Loss and loss adjustment expense                                |   |                                             | 36,763  |   |   |   | 35,088 |   |
| Acquisition costs and other underwriting expenses               |   |                                             | 34,756  |   |   |   | 34,181 |   |
|                                                            |   |                                             | 71,519  |   |   |   | 69,269 |   |
| Underwriting income                                             |   | $                                                | 8,667   |   |   | $ | 11,561 |   |
|                                                            |   |                                             |    |   |   |   |   |   |
| Key Measures:                                                   |   |                                             |    |   |   |   |   |   |
| Net loss ratio                                                  |   |                                             | 59.4    | % |   |   | 58.9 | % |
| Net expense ratio                                               |   |                                             | 26.6    | % |   |   | 21.7 | % |
| Net combined ratio                                              |   |                                             | 86.0    | % |   |   | 80.6 | % |
|                                                            |   |                                             |    |   |   |   |   |   |
| Reconciliation of net expense ratio:                            |   |                                             |    |   |   |   |   |   |
| Acquisition costs and other underwriting expenses               |   | $                                                | 34,756  |   |   | $ | 34,181 |   |
| Less: ceding commission revenue – primarily related party |   |                                             | 18,325  |   |   |   | 21,226 |   |
|                                                            |   | $                                                | 16,431  |   |   | $ | 12,955 |   |
| Net earned premium                                              |   | $                                                | 61,861  |   |   | $ | 59,604 |   |
| Net expense ratio                                               |   |                                             | 26.6    | % |   |   | 21.7 | % |

----

|                                                            |   | Three Months Ended March 31, |    |
|-----------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                            |   | 2011                                             |    |   | 2010 |   |
|                                                            |   | (Amounts in Thousands)                 |    |
| Gross written premium                                           |   | $                                                | 227,748 |   |   | $ | 152,174 |   |
|                                                            |   |                                             |    |   |   |   |   |   |
| Net written premium                                             |   | $                                                | 104,547 |   |   | $ | 86,049 |   |
| Change in unearned premium                                      |   |                                             | (19,970 | ) |   |   | (34,285 | ) |
| Net earned premiums                                             |   |                                             | 84,577  |   |   |   | 51,764 |   |
| Ceding commission revenue                                       |   |                                             | 12,899  |   |   |   | 7,903 |   |
| Loss and loss adjustment expense                                |   |                                             | 57,424  |   |   |   | 31,160 |   |
| Acquisition costs and other underwriting expenses               |   |                                             | 26,648  |   |   |   | 14,711 |   |
|                                                            |   |                                             | 84,072  |   |   |   | 45,871 |   |
| Underwriting income                                             |   | $                                                | 13,404  |   |   | $ | 13,796 |   |
|                                                            |   |                                             |    |   |   |   |   |   |
| Key Measures:                                                   |   |                                             |    |   |   |   |   |   |
| Net loss ratio                                                  |   |                                             | 67.9    | % |   |   | 60.2 | % |
| Net expense ratio                                               |   |                                             | 16.3    | % |   |   | 13.2 | % |
| Net combined ratio                                              |   |                                             | 84.2    | % |   |   | 73.3 | % |
|                                                            |   |                                             |    |   |   |   |   |   |
| Reconciliation of net expense ratio:                            |   |                                             |    |   |   |   |   |   |
| Acquisition costs and other underwriting expenses               |   | $                                                | 26,648  |   |   | $ | 14,711 |   |
| Less: ceding commission revenue – primarily related party |   |                                             | 12,899  |   |   |   | 7,903 |   |
|                                                            |   | $                                                | 13,749  |   |   | $ | 6,808 |   |
| Net earned premium                                              |   | $                                                | 84,577  |   |   | $ | 51,764 |   |
| Net expense ratio                                               |   |                                             | 16.3    | % |   |   | 13.2 | % |

----

|                                              |   | Three Months Ended March 31, |   |
|---------------------------------------------------|--------|--------------------------------------------------|--------|
|                                              |   | 2011                                             |   |   | 2010 |   |
|                                              |   | (Amounts in Thousands)                 |   |
| Gross written premium                             |   | $                                                | 49,976 |   |   | $ | 54,655 |   |
|                                              |   |                                             |   |   |   |   |   |   |
| Net written premium                               |   | $                                                | 26,234 |   |   | $ | 33,227 |   |
| Change in unearned premium                        |   |                                             | 4,536  |   |   |   | 3,505 |   |
| Net earned premium                                |   |                                             | 30,770 |   |   |   | 36,722 |   |
| Ceding commission revenue                         |   |                                             | 4,460  |   |   |   | 3,119 |   |
| Loss and loss adjustment expense                  |   |                                             | 19,705 |   |   |   | 23,573 |   |
| Acquisition costs and other underwriting expenses |   |                                             | 12,312 |   |   |   | 12,454 |   |
|                                         |   |                                             | 32,017 |   |   |   | 36,027 |   |
| Underwriting income                               |   | $                                                | 3,213  |   |   | $ | 3,824 |   |
|                                         |   |                                             |   |   |   |   |   |   |
| Key Measures:                                     |   |                                             |   |   |   |   |   |   |
| Net loss ratio                                    |   |                                             | 64.0   | % |   |   | 64.2 | % |
| Net expense ratio                                 |   |                                             | 25.5   | % |   |   | 25.4 | % |
| Net combined ratio                                |   |                                             | 89.6   | % |   |   | 89.6 | % |
|                                         |   |                                             |   |   |   |   |   |   |
| Reconciliation of net expense ratio:              |   |                                             |   |   |   |   |   |   |
| Acquisition costs and other underwriting expenses |   | $                                                | 12,312 |   |   | $ | 12,454 |   |
| Less: ceding commission revenue                   |   |                                             | 4,460  |   |   |   | 3,119 |   |
|                                    |   | $                                                | 7,852  |   |   | $ | 9,335 |   |
| Net earned premium                                |   | $                                                | 30,770 |   |   | $ | 36,732 |   |
| Net expense ratio                                 |   |                                             | 25.5   | % |   |   | 25.4 | % |

----

|                                              |   | Three Months Ended March 31, |    |
|---------------------------------------------------|--------|--------------------------------------------------|---------|
|                                              |   | 2011                                             |    |   | 2010 |   |
|                                              |   | (Amounts in Thousands)                 |    |
| Gross written premium                             |   | $                                                | 25,587  |   |   | $ | 8,700 |   |
|                                              |   |                                             |    |   |   |   |   |   |
| Net written premium                               |   | $                                                | 25,587  |   |   | $ | 8,700 |   |
| Change in unearned premium                        |   |                                             | (2,457  | ) |   |   | (8,700 | ) |
| Net earned premium                                |   |                                             | 23,130  |   |   |   | — |   |
| Ceding commission revenue                         |   |                                             | — |   |   |   | — |   |
| Loss and loss adjustment expense                  |   |                                             | 14,804  |   |   |   | — |   |
| Acquisition costs and other underwriting expenses |   |                                             | 7,518   |   |   |   | — |   |
|                                         |   |                                             | 22,322  |   |   |   | — |   |
| Underwriting income                               |   | $                                                | 808     |   |   | $ | — |   |
|                                         |   |                                             |    |   |   |   |   |   |
| Key Measures:                                     |   |                                             |    |   |   |   |   |   |
| Net loss ratio                                    |   |                                             | 64.0    | % |   |   | — | % |
| Net expense ratio                                 |   |                                             | 32.5    | % |   |   | — | % |
| Net combined ratio                                |   |                                             | 96.5    | % |   |   | — | % |

|                                             |   | Three Months EndedMarch 31, |    |
|--------------------------------------------------|--------|--------------------------------------------|---------|
| (Amounts in Thousands)                 |   | 2011                                       |    |   | 2010 |   |
| Cash and cash equivalents provided by (used in): |   |                                       |    |   |   |   |
| Operating activities                             |   | $                                          | 55,331  |   |   | $ | 21,975 |   |
| Investing activities                             |   |                                       | (24,090 | ) |   |   | (82,609 | ) |
| Financing activities                             |   |                                       | 10,749  |   |   |   | 47,066 |   |

----

----

----

----

----

----

|                                          |   | March 31, 2011 |      |   | December 31, 2010 |   |
|-----------------------------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
| (Amounts in Thousands)              |   | CarryingValue            |      |   | Percentage ofPortfolio |   |   | CarryingValue |   |   | Percentage ofPortfolio |   |
| Cash and cash equivalents                     |   | $                        | 246,058   |   |                        |   | 16.5 | % |   | $ | 201,949 |   |   |   | 13.8 | % |
| Time and short-term deposits                  |   |                     | 23,365    |   |                        |   | 1.6 |   |   |   | 32,137 |   |   |   | 2.2 |   |
| U.S. treasury securities                      |   |                     | 84,577    |   |                        |   | 5.7 |   |   |   | 82,447 |   |   |   | 5.6 |   |
| U.S. government agencies                      |   |                     | 6,572     |   |                        |   | 0.4 |   |   |   | 7,162 |   |   |   | 0.5 |   |
| Municipals                                    |   |                     | 72,177    |   |                        |   | 4.8 |   |   |   | 66,676 |   |   |   | 4.6 |   |
| Commercial mortgage back securities           |   |                     | 1,881     |   |                        |   | 0.1 |   |   |   | 2,076 |   |   |   | 0.1 |   |
| Residential mortgage backed securities:  |   |                     |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Agency backed                                 |   |                     | 518,446   |   |                        |   | 34.7 |   |   |   | 546,098 |   |   |   | 37.4 |   |
| Non-agency backed                             |   |                     | 8,533     |   |                        |   | 0.6 |   |   |   | 8,591 |   |   |   | 0.6 |   |
| Asset backed securities                       |   |                     | 1,322     |   |                        |   | 0.1 |   |   |   | 2,687 |   |   |   | 0.2 |   |
| Corporate bonds                               |   |                     | 514,817   |   |                        |   | 34.4 |   |   |   | 493,076 |   |   |   | 33.8 |   |
| Preferred stocks                              |   |                     | 4,641     |   |                        |   | 0.3 |   |   |   | 7,037 |   |   |   | 0.5 |   |
| Common stocks                                 |   |                     | 12,316    |   |                        |   | 0.8 |   |   |   | 10,375 |   |   |   | 0.7 |   |
|                                          |   | $                        | 1,494,705 |   |                        |   | 100.0 | % |   | $ | 1,460,311 |   |   |   | 100.0 | % |

|   | • | the current fair value compared to amortized cost; |
|--------|---------|----------------------------------------------------|

|   | • | the length of time the security’s fair value has been below its amortized cost; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | • | specific credit issues related to the issuer such as changes in credit rating, reduction or elimination of dividends or non-payment of scheduled interest payments; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | whether management intends to sell the security and, if not, whether it is not more than likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations or earnings; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the occurrence of a discrete credit event resulting in the issuer defaulting on material outstanding obligations or the issuer seeking protection under bankruptcy laws; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | other items, including company management, media exposure, sponsors, marketing and advertising agreements, debt restructurings, regulatory changes, acquisitions and dispositions, pending litigation, distribution agreements and general industry trends. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Amounts in thousands) |   | 2011   |    |   | 2010   |   |
|----------------------------------|--------|--------|---------|--------|--------|--------|
| Equity securities                |   | $      | — |   |   | $      | 5,138 |   |
| Fixed maturity securities        |   |   | — |   |   |   | — |   |
|                             |   | $      | — |   |   | $      | 5,138 |   |

----

| Hypothetical Change in Interest Rates |   | Fair Value |      |   | EstimatedChange inFair Value |   |     | Hypothetical Percentage(Increase)Decrease inShareholders’ Equity |   |
|-----------------------------------------------------------|--------|-----------------|-----------|--------|----------------------------------------|--------|----------|---------------------------------------------------------------------------------------|--------|
| (Amounts in Thousands)                          |   |
| 200 basis point increase                                  |   | $               | 1,103,263 |   |                                   | $      | (105,062 | )                                                                                     |   |   | (8.9 | )% |
| 100 basis point increase                                  |   |            | 1,155,611 |   |                                   |   | (52,714  | )                                                                                     |   |   | (4.5 | ) |
| No change                                                 |   |            | 1,208,325 |   |                                   |   | —  |                                                                                  |   |   | — |   |
| 100 basis point decrease                                  |   |            | 1,255,109 |   |                                   |   | 46,784   |                                                                                  |   |   | 4.0 |   |
| 200 basis point decrease                                  |   |            | 1,291,593 |   |                                   |   | 83,268   |                                                                                  |   |   | 7.1 |   |

| Hypothetical Change in Interest Rates |   | Fair Value |   |   | EstimatedChange inFair Value |   |    | Hypothetical Percentage(Increase) Decrease inShareholders’ Equity |   |
|-----------------------------------------------------------|--------|-----------------|--------|--------|----------------------------------------|--------|---------|------------------------------------------------------------------------------|--------|
| (Amounts in Thousands)                                    |   |
| 5% increase                                               |   | $               | 17,805 |   |                                   | $      | 848     |                                                                         |   |   | .07 | % |
| No change                                                 |   |            | 16,957 |   |                                   |   | — |                                                                         |   |   |   |   |
| 5 % decrease                                              |   |            | 16,109 |   |                                   |   | (848    | )                                                                            |   |   | (.07 | ) |

----

----

| ExhibitNumber |   | Description                                                                                                                                                                                                                                                                                                                                                                                |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.1          |   | Credit Agreement, dated January 28, 2011, among the Company, JPMorgan Chase Bank, N.A., as Administrative Agent, The Bank of Nova Scotia, as Syndication Agent, SunTrust Bank, as Documentation Agent, and the lending institutions party thereto (incorporated by reference to Exhibit 10.1 to the Company’s current report on Form 8-K (No. 001-33143) filed on January 31, 2011). |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.1          |   | Certification of the Chief Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a), for the quarter ended March 31, 2011.                                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.2          |   | Certification of the Chief Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a), for the quarter ended March 31, 2011.                                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                       |
| 32.1          |   | Certification of the Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, for the quarter ended March 31, 2011.                                                                                                                                                                                                                                                                    |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                       |
| 32.2          |   | Certification of the Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, for the quarter ended March 31, 2011.                                                                                                                                                                                                                                                                    |

----

|               | AmTrust Financial Services, Inc. |
|--------------------|----------------------------------|
|               | (Registrant)                     |
|               |                             |   |
| Date: May 10, 2011 |                             | /s/ Barry D. Zyskind |
|               |                             | Barry D. ZyskindPresident and Chief Executive Officer |
|               |                             |   |
|               |                             | /s/ Ronald E. Pipoly, Jr. |
|               |                             | Ronald E. Pipoly, Jr.Chief Financial Officer |

----