IAT Insurance Group (IAT) has reached a definitive agreement to acquire the renewal rights and certain associated assets for a book of surplus lines excess and umbrella insurance business from Rockhill Insurance Group. Rockhill is a subsidiary of State Auto Mutual Insurance Company.
Financial terms were not disclosed, and the deal is expected to close May 1, 2018.
“Securing renewal rights to Rockhill’s established surplus lines excess casualty portfolio, along with several of their experienced employees, will significantly support our efforts to expand our middle-market presence,” said IAT Chief Executive Officer Bill
Cunningham. Mike LaRocco, president and CEO of State Auto, said:
“We’re pleased we’ve reached this agreement with IAT, which upon closing will complete State Auto’s previously announced divestiture of its specialty lines of business.”
As part of the deal, IAT will consolidate Rockhill’s Kansas City, Mo., excess and umbrella operations into its own office in the city, including the on-boarding of 11 current Rockhill employees. The Rockhill portfolio consists of approximately $40 million of in force premium and focuses on providing unsupported umbrella and excess coverage for low-to-medium hazard, middle-market commercial risks.
The transaction adds to IAT’s planned growth in this area of business. Last fall, IAT hired Coy Rudd to serve as senior vice president of a new excess casualty – mid market E&S unit targeting middle-market risks written through wholesale surplus lines brokers.
“When I joined IAT last year, this was the kind of focused acquisition I felt would truly kick-start the expansion of our excess liability business,” said Rudd. “The profile of this book of business fits very well within our target market.”
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, IAT markets through six business units – commercial transportation, specialty, programs, inland marine, excess casualty – mid-market E&S, and assumed reinsurance. The IAT Insurance Group companies are rated A- Excellent by A.M. Best.
State Automobile Mutual Insurance Company, headquartered in Columbus, Ohio, is a super regional property and casualty insurance holding company. The company is primarily engaged in writing personal and business insurance products exclusively through independent insurance agencies in 33 states.
Keefe, Bruyette & Woods, Inc., a Stifel Company, served as financial advisor to State Auto in the transaction.
Source: IAT Insurance Group