New York-based multinational insurance holding company AmTrust Financial Services has inked a contract to acquire the Insco Dico Group, in a transaction worth nearly $85m.
Funded through existing working capital, the acquisition is expected to complete within the next six months, subject to concerned regulatory approvals.
The acquisition includes Insco Dico's subsidiaries' Developers Surety and Indemnity Company and Indemnity Company of California, which offer surety insurance to developers and contractors in all 50 states.
Insco Dico's subsidiary, Builders Insurance Services is also part of the deal, which markets general liability insurance policies to contractors in several western states.
During 2012, Insco Dico generated nearly $50m in insurance premium.
AmTrust Financial Services president and CEO Barry Zyskind said, "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."
FBR Capital Markets & Co served as financial advisor to AmTrust in relation to the transaction.
In May 2013, the company purchased Mutual Insurers Holding Company (MIHC) and its subsidiary, First Nonprofit Insurance Company (FNIC).
AmTrust Financial Services provides specialty property and casualty insurance products, including workers' compensation, commercial automobile and general liability; extended service and warranty coverage, through its insurance carrier.
