Sompo International acquires US surety insurance group
Sompo International's US insurance platform has reached an agreement to purchase the operating subsidiaries of Lexon Surety Group.
Lexon, the second largest independent surety insurer in the US, is comprised of Lexon Insurance Company, Bond Safeguard Insurance Company, and Fortress National Group. The group has been offering a broad array of commercial and contract surety bonds, court and probate bonds, and US custom bonds through a nationwide network of agents since 2001.
Following the deal, David Campbell will continue in his role as president of Lexon and will be appointed vice chairman of the Lexon Board. Brian Beggs of Sompo International will become the chief executive officer of Lexon. Lexon’s staff and office locations will be retained.
Christopher Sparro, CEO of US insurance at Sompo International, who will be appointed chairman of the Lexon Board, commented: "Lexon has a strong reputation in the surety market, and this acquisition will position us to substantially accelerate the growth of our U.S. primary surety portfolio and our 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, which are highly complementary to Sompo International’s existing product capabilities."
Jack Kuhn, CEO of global insurance at Sompo International, added: "This acquisition is another step in the ongoing expansion of our U.S. Insurance capabilities into markets that complement our current operations. Lexon’s culture and business mix will be an excellent addition to our existing surety insurance group, allowing us to provide additional product capabilities to our valued customers, and creating value for our combined operations and our business partners. We look forward to welcoming the Lexon team to Sompo International."
Campbell stated: "The Lexon Surety Group employees are very pleased to join the Sompo International organization. Lexon’s organic growth to a top ten surety insurer was made possible by Lexon’s highly experienced staff and my cofounders, Brook Smith and PVM Ventures. Combining Lexon’s proven customer-oriented service and Sompo International’s financial strength will provide Lexon and Sompo International with a formidable platform in the surety insurance industry."
The transaction is expected to close in March of 2018, following regulatory approvals.
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