OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best commented that the Credit Ratings (ratings) of International Fidelity Insurance Company (Newark, NJ), and its subsidiary, Allegheny Casualty Company (collectively referred to as IFIC Group) remain unchanged following the recently announced sale of the parent holding company, IFIC Surety Group, Inc. (IFIC).
On April 3, 2018, IFIC entered into a definitive agreement to be acquired by IAT Reinsurance Company Ltd. (IAT Re) (Cayman Islands) for an undisclosed amount. The transaction is pending approval by IFIC’s shareholders and is subject to customary regulatory approvals. A.M. Best expects the transaction to close in third-quarter 2018.
The pending transaction is expected to be bolt-on, which will essentially allow IFIC to maintain its operating autonomy and key personnel while retaining its brand and distribution network in the surety marketplace. Being purchased by IAT Re, the planned acquisition provides IFIC with additional capital resources and enhanced financial flexibility. In return, IAT Re gains an additional product offering and is afforded a well-established surety platform in the United States.
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