Sompo International, a Bermuda-based specialty insurer and reinsurer, is making an acquisition designed to boost its presence in the surety market.
The transaction will take place through its U.S. Insurance Platform, which has agreed to buy up the operating subsidiaries of Lexon Surety Group. Neither side disclosed financial terms. Plans call for keeping Lexon’s staff and office locations, and Lexon President David Campbell will remain and also become vice chairman of the Lexon Board. Brian Beggs, a Sompo International executive, will be Lexon’s chief executive officer.
Plans call for closing the deal in March 2018, once regulatory approvals are met.
Lexon is the second-largest independent surety insurer in the U.S., and it includes Lexon Insurance Company, Bond Safeguard Insurance Company and Fortress National Group LLC. The group has offered a number of commercial and contract surety bonds, court and probate bonds, and U.S. Custom Bonds through a nationwide network of agents since 2001, according to the deal announcement.
Christopher Sparro, CEO of U.S. Insurance at Sompo International, will become chairman of the Lexon Board. He said in prepared remarks that the acquisition is designed to help Sompo accelerate the growth of its U.S. primary surety portfolio and its overall presence “in this specialized market.”
“Lexon’s team brings to the table strong distribution relationships with a nationwide network of agents and brokers as well as specialty expertise across their surety and bond offerings,” Sparro said. He added that these products are “highly complementary to Sompo International’s existing product capabilities.”
Campbell added, also in prepared remarks, that he expects the acquisition “will provide Lexon and Sompo International with a formidable platform in the surety insurance industry.”
Source: Sompo International