Bermuda-based global specialty lines underwriter Argo Group International Holdings has agreed to sell its Trident Public Risk Solutions brand and underwriting platform to Paragon Insurance Holdings.
Neither side disclosed the purchase price.
Trident Public Risk Solutions provides insurance and risk management services for public sector entities such as counties, municipalities, schools, special districts and governmental inter-local pools. Its product lines include general liability, automobile liability and physical damage, property, inland marine, crime, public officials’ liability, educators’ legal liability, employment practices liability, law enforcement liability and umbrella liability. It operates through a distribution network of national brokerages and local agencies. It has offices in San Antonio, Texas and Springfield, Massachusetts.
Paragon Insurance Holdings is headquartered in Avon, Connecticut, and operates as a national managing general agency. Formed in 2014, the company writes all commercial lines of insurance across more than 20 insurance programs including ones for arborists, ski facilities, pest control, timber, precision manufacturing and wineries.
Argo will retain Trident’s claims operations and will provide claims services to Paragon for the public entity business.
Paragon will continue to write business on Argo paper through a managing general agency agreement.
All existing Trident policies and products will remain valid and available.
The transaction is expected to close in the coming months, and Argo expects to report a pre-tax gain of approximately $37 million related to the transaction.
“This sale will build on the partnership between Argo and Paragon Insurance, providing growth opportunities to both companies through roles that play to the strengths of each,” said Tim Carter, executive vice president, Argo Group U.S. “Paragon’s distribution reach will give Trident greater access to new markets in the public entity insurance marketplace, and Argo will be a strong partner in those endeavors.”
Ron Ganiats, CEO and co-founder of Paragon, called Trident “an exciting addition” to Paragon’s portfolio. He said Trident’s underwriters will be invaluable as the teams work together to “help the brand reach its fullest potential.”
*This story ran previously in our sister publication Insurance Journal.