Bermudian property and casualty (P/C) re/insurer Sompo International Holdings (SI) has acquired Lexon Surety Group (Lexon), the second largest independent surety insurer in the United States.
Lexon is comprised of Lexon Insurance Company, Bond Safeguard Insurance Company and Fortress National Group. The acquisition is expected to positively impact the subsidiaries’ financial strength ratings.
Lexon staff and office locations are to be integrated with SI’s Surety business under the leadership of Christopher Sparro, Chief Executive Officer (CEO) of U.S. Insurance.
Brian Beggs, Executive Vice President (EVP), Sompo International Surety will lead the combined operation and will relocate to Lexon’s headquarters in Mt. Juliet, Tennessee.
SI is to continue offering the same array of commercial and contract surety bonds, court and probate bonds, and U.S. Custom bonds products Lexon has offered since 2001.
Commenting on the acquisition, Sparro said, “We are very excited to welcome Lexon into our U.S. Insurance operation. They have an excellent reputation and their technical underwriting proficiency is closely aligned with our corporate culture. The combined organization will be one of the ten leading insurers in the U.S. surety market, significantly contributing to our strategic expansion in the U.S.”
Beggs added, “Lexon has a reputation for quality products and strong distribution relationships which are highly complementary to our current surety capabilities. Their nationwide network of agents and brokers coupled with expertise in specialty niches such as energy will enable us to substantially accelerate the growth of our primary surety portfolio.”