AmTrust Financial Services, Inc. announced Wednesday that it entered into a definitive agreement to acquire The Insco Dico Group for approximately $85 million, or $7.0 million above its tangible book value.
Insco Dico’s subsidiaries include Developers Surety and Indemnity Company and Indemnity Company of California, which offer surety insurance to developers and contractors in all 50 states with California as the largest state. In addition, Insco Dico’s subsidiary, Builders Insurance Services, markets general liability insurance policies to contractors in several western states.
In 2012, Insco Dico generated approximately $50 million in insurance premium, according to AmTrust.
AmTrust said the acquisition will be funded through existing working capital and that the deal is expected to close within the next six months pending regulatory approval.
“Insco Dico significantly enhances the Company’s presence in the domestic surety insurance market and expands our operations with new insurance products, additional distribution and unique industry expertise,” said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind, in a statement.
“In addition, we believe the improving trends in the economy and housing market will increase demand for Insco Dico’s surety insurance.”
Source: AmTrust Financial Services, Inc.