Latest The Insco Dico Group News
Sep 27, 2013
September 27, 2013 Comments AmTrust Financial Services Inc. has entered into a definitive agreement to acquire The Insco Dico Group for roughly $85 million, $7 million above its tangible book value, the company has announced. The acquisition is to be funded through existing working capital, and AmTrust expects the transaction to close within the next six months pending regulatory approval. Insco Dico’s subsidiaries include Developers Surety and Indemnity Co. and Indemnity Company of California, which offer surety insurance to developers and contractors in all 50 states with California as the largest state. Insco Dico’s subsidiary, Builders Insurance Services, markets general liability insurance policies to contractors in several western states. In 2012, Insco Dico generated roughly $50 million in insurance premium. FBR Capital Markets & Co. served as financial advisor to AmTrust. New York-based AmTrust is a multinational insurance holding company. Through its insurance carriers it offers specialty property/casualty insurance products, including workers’ compensation, commercial automobile and general liability, and extended service and warranty coverage. Shares of AmTrust (Nasdaq: AFSI) traded down 50 cents to $39.04 on Friday. Shares of the stock fell slightly following the announcement of the deal last week, but have since stabilized and have continued to trade off their one-year high of $44.46.