IAT Insurance Group Inc. has agreed to acquire the renewal rights and certain associated assets for a book of Rockhill Insurance Group's surplus lines excess and umbrella insurance business.
The acquired portfolio consists of nearly $40 million of in-force premium and focuses on providing unsupported umbrella and excess coverage for low- to medium-hazard, middle-market commercial risks.
Financial terms of the deal, which is expected to close May 1, were not disclosed.
As part of the deal, IAT will consolidate Rockhill Insurance's Kansas City, Mo., excess and umbrella operations into its own office in the city. Eleven Rockhill Insurance employees will join IAT.
Keefe Bruyette & Woods Inc. served as financial adviser to State Automobile Mutual Insurance Co., the parent company of Rockhill Insurance, in connection with the transaction.
State Auto President and CEO Mike LaRocco said the closing of the IAT deal will complete the company's planned divestiture of its specialty lines of business.
Capitol Indemnity Corp. acquired the renewal rights to Rockhill Insurance's environmental book of business, and K2 Insurance Services LLC has acquired the general liability and gas and propane distribution lines of business of Rockhill Insurance.