Raleigh-based IAT Insurance Group has agreed to acquire another insurance company for an undisclosed amount.

IFIC Surety Group, the acquired company, is comprised of International Fidelity Insurance Co. and subsidiary Allegheny Casualty Co. The acquisition will position IAT into the surety market.

“IFIC is a well-respected company with a long history in the surety sector, and we are pleased to welcome it into the IAT family,” IAT CEO Bill Cunningham said in a statement. “Its leading position in the market and broad distribution network, make IFIC a natural fit for IAT’s strategic objectives.”

Fred Mitterhoff, the chairman of IFIC, will serve on the board of the company for the next two years.

“We value the quality of the IFIC team and their strong underwriting discipline,” Cunningham said.

IFIC is the eighth largest surety writer in the United States, but the largest independently owned. It has 220 employees and more than $150 million in gross written premium.

“Like IAT, IFIC has always been a family owned company,” Mitterhoff said, “and, when it came time to sell, we wanted to ensure that our values were maintained, including our commitment to employees, providing strong benefits, and fostering a supportive work environment.

“IAT is the perfect choice because they want to keep our talented team in place and invest in making the company even better.”

The transaction is subject to regulatory approvals.