IAT Insurance Group said it will jump into the surety market with a planned agreement to buy IFIC Surety Group Inc. Neither side is disclosing financial terms of the acquisition deal, which will close pending regulatory approvals.
IAT CEO Bill Cunningham said that the purchase agreement makes sense and fits well with its strategic goals.
“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,” Cunningham said in prepared remarks. “Its leading position in the market and broad distribution network make IFIC a natural fit for IAT’s strategic objectives.”
Plans call for maintaining the IFIC brand, and Cunningham noted that IFIC Chairman Fred Mitterhoff will stay on for the next two years. Mitterhoff, meanwhile, said the acquisition deal between two family-owned companies will help maintain IFIC’s culture and staff for the future.
“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,” Mitterhoff explained in prepared remarks. “IAT is the perfect choice because they want to keep our talented team in place and invest in making the company even better.”
IFIC Surety, based in Newark, N.J., operates in 24 U.S. locations and writes contract commercial bail, customs, specialty and subdivision bonds. Writings in each of these areas are spread throughout the country and produced through dedicated independent agencies specializing in surety. The company includes International Fidelity Insurance Company and its subsidiary Allegheny Casualty Company. The group employs 220 people and produces more than $150 million in gross written premium.
Raleigh, N.C.-based IAT, on the other hand, is a specialty insurance company that produces $1.3 billion in annual gross written premium, employs 700 people and maintains 13 offices around the country. It has six business units: Commercial Transportation, Specialty, Programs, Inland Marine, Surplus Lines Excess and Assumed Reinsurance.
Source: IAT Insurance, IFIC Surety Group