IAT Insurance Group Acquires Renewal Rights for Excess and Umbrella Book from Rockhill Insurance Group
RALEIGH, N.C. & COLUMBUS, OH — IAT Insurance Group (IAT) announced that it 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). Rockhill is a subsidiary of State Auto Mutual Insurance Company (State Auto). Financial terms were not disclosed, and the deal is expected to close May 1, 2018. Keefe, Bruyette & Woods, Inc., a Stifel Company, served as financial advisor to State Auto in the transaction.
“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. “This business is a nice addition to our existing excess product offerings for the small commercial market available through our IAT Specialty business unit.”
Mike LaRocco, President and CEO of State Auto, noted, “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. I wish the team and IAT great success going forward.”
As part of the deal, IAT will consolidate Rockhill’s Kansas City, Missouri 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. This transaction is a further strategic move in this area of business for IAT, which 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.”