RLI, a specialty insurance company, has said that it will acquire Contractors Bonding Insurance Company (CBIC) through an acquisition of its holding company Data and Staff Service (DSS) for approximately $137m in cash.
Seattle-based CBIC is a privately held insurance company specializing in surety bonds and related niche property and casualty insurance products.
CBIC serves over 30,000 contractors and over 4,000 insurance agents and brokers nationwide through 13 regional branch offices.
For the nine months ending 30 September 2010, CBIC’s Generally Accepted Accounting Principles (GAAP) financial results included total assets of $270m and total revenue of $45m.
RLI president & CEO Jonathan Michael said that this acquisition combines the strength, financial stability and experience of two successful specialty insurance companies.
"CBIC’s excellent reputation with its producers, and the unique product offerings that it brings to RLI, will add value to our business. We look forward to working with CBIC’s talented team," Michael said.
The acquisition is subject to regulatory approval and expected to close in the first quarter of 2011.