AmTrust Financial Services (NASDAQ: AFSI ) is soon to be larger by one asset. The company announced it has signed an agreement to acquire The Insco Dico Group, a specialty insurance provider, for around $85 million in cash.
Through subsidiaries, Insco Dico offers surety insurance to real estate developers and contractors across the United States. It also provides general liability insurance to contractors in selected markets in the West. According to AmTrust, Insco Dico took in roughly $50 million worth of insurance premiums in 2012.
In the press release heralding the news, AmTrust quoted CEO Barry Zyskind as saying that the acquisition "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."
AmTrust said it will fund the transaction through its existing working capital. It expects the deal to close within six months, pending approval from the relevant regulators.