Specialty insurer moves into surety market with acquisition
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IAT Insurance Group on Tuesday said it has agreed to acquire Newark, New Jersey-based IFIC Surety Group Inc. for an undisclosed amount.
The move signals IAT’s entry into the surety market, the Raleigh, North Carolina-based specialty insurer said in a statement.
IFIC Surety Group, which consists of International Fidelity Insurance Co. and its Allegheny Casualty Co. subsidiary, has 220 employees and over $150 million in gross written premium, IAT said in the statement.
IAT said it plans to maintain the IFIC brands.
“We value the quality of the IFIC team and their strong underwriting discipline,” IAT CEO Bill Cunningham said in the statement, “and we are pleased that Chairman Fred Mitterhoff has agreed to stay on board for the next two years.”
Separately, credit ratings agency A.M. Best Co. Inc. said its rating of IAT Reinsurance Co Ltd. and IAT Insurance Group remain unchanged following the announcement of the acquisition agreement.
The pending transaction is expected to be bolt-on, Best said, which will essentially provide IAT an additional product offering and a well-established surety platform in the United States.
“It is expected that IFIC will maintain its operating autonomy and key personnel while retaining its brand and distribution network in the surety marketplace,” Best said in a statement.
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