Specialty property and casualty products provider IAT Insurance Group (IAT) has agreed to acquire IFIC Surety Group for an undisclosed sum.
The acquisition signals IAT’s entry into the surety market. The closing of the transaction is subject to customary regulatory approvals.
IFIC Surety Group consists of International Fidelity Insurance Company and its subsidiary Allegheny Casualty Company. The group has 220 employees and over $150m in gross written premium, is the largest independently owned, and the eighth largest surety writer in the United States. With $1.3bn in annual gross written premium and $1.2bn of GAAP equity, IAT Insurance Group has the resources and financial strength to provide additional capacity and support IFIC’s continued growth.
IAT plans to maintain the IFIC brand, which has broad recognition amongst its agents and customers.
IAT CEO Bill Cunningham said: “IFIC is a well-respected company with a long history in the surety sector and we are pleased to welcome it into the IAT family. Its leading position in the market and broad distribution network, make IFIC a natural fit for IAT’s strategic objectives.
“We value the quality of the IFIC team and their strong underwriting discipline, and we are pleased that Chairman Fred Mitterhoff has agreed to stay on board for the next two years.”
IFIC chairman Fred Mitterhoff said: “Like IAT, IFIC has always been a family-owned company and, when it came time to sell, we wanted to ensure that our values were maintained, including our commitment to employees, providing strong benefits, and fostering a supportive work environment.
“IAT is the perfect choice because they want to keep our talented team in place and invest in making the company even better.”
Jones Day served as legal advisor and Keefe, Bruyette & Woods, Inc., a Stifel Company, served as financial advisor to IFIC in the transaction. Poyner Spruill served as legal advisor to IAT in the transaction.
Source: Company Press Release