Ironshore Inc. is diving deeper into the surety market with plans to buy up the remaining 80 percent of an insurance holding company specializing in surety bonds that it doesn’t already own.

The Bermuda-based specialty property/casualty insurer said it will be acquiring the rest of Lexon Surety Group and its affiliates, a Tennessee-based privately-held insurance holding company that is the 12^th largest writer in the U.S. specializing in the surety bond business.

Neither side is disclosing financial terms, but Ironshore said the deal is an all-cash transaction that will close in 2016, pending regulatory approvals and other processes typical for this kind of transaction.

Paul Giordano, chairman of Ironshore Political Risk, Special Risk and Surety, said in prepared remarks that the Lexon acquisition “is a culmination of our plan to enter the surety market through an established company with a strong customer franchise, diverse product mix and capable management team.”

According to Ironshore, Lexon’s national network of agents and brokers underwrites more than $135 million in direct written premium each year, in 49 states, Washington, D.C. and for U.S. properties overseas.

Ironshore initially invested in Lexon in 2013, and upped its stake to 20 percent a year later.

The deal is complementary for both parties. Ironshore said its investment in 2014 helped boost Lexon’s financial strength. In turn, Ironshore subsidiaries supply quota share reinsurance plus a primary fronting facility on new and renewal business for U.S. commercial and contract surety risks.

Source: Ironshore Inc.