RALEIGH, N.C. & NEWARK, N.J.--(BUSINESS WIRE)--IAT Insurance Group (IAT), a leading provider of specialty property and casualty products for businesses and individuals, announced today that the company has reached a definitive agreement to acquire IFIC Surety Group, Inc. for an undisclosed amount. 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 $150 million in gross written premium, is the largest independently owned, and the eighth largest surety writer in the United States. With $1.3 billion in annual gross written premium and $1.2 billion 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 Chief Executive Officer Bill Cunningham noted, “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.”
Fred Mitterhoff, IFIC Chairman, added “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.
About IFIC Surety Group, Inc.
IFIC is headquartered in Newark, NJ and operates in 24 locations throughout the U.S. The company writes contract, commercial, bail, customs, specialty and subdivision bonds. Writings in each of these areas are spread throughout the U.S. and produced through dedicated independent agencies specializing in surety. For more information, please visit www.ific.com.
About IAT Insurance
IAT Insurance Group is a privately owned, specialty insurance company providing property and casualty products for businesses and individuals. With 700 employees and 13 offices across the country, we go to market through six business units – Commercial Transportation, Specialty, Programs, Inland Marine, Surplus Lines Excess, and Assumed Reinsurance. The IAT Insurance Group companies are rated A- Excellent by A.M. Best. Connect with IAT Insurance Group on LinkedIn and Facebook, and learn more about the company at www.iatinsurancegroup.com.