Ironshore, the Bermuda-based insurer, has reached an agreement to acquire the remaining 80 percent equity interest in privately-held insurance holding company Lexon Surety Group, and its surety-related affiliates.
Ironshore will use cash on hand to fund the purchase in an all-cash transaction expected to close in 2016.
The insurer became a 20 percent owner of Lexon in 2014 following its initial investment in 2013. At that time, Ironshore’s capital infusion enhanced Lexon’s financial strength. Ironshore’s subsidiaries also provide quota share reinsurance and a primary fronting facility on new and renewal business for US commercial and contract surety risks.
Lexon Surety business includes contract surety bonds, commercial surety bonds, court surety and probate surety bonds, as well as US Customs surety bonds.
Kevin Kelley, chief executive officer (CEO), Ironshore, said: “Our strategic alliance with Lexon over the past three years has benefited Lexon’s producers and customers and we look forward to enhancing our services for them in the years ahead.
“This acquisition also reflects close collaboration between Ironshore and Fosun International Limited, continuing to support efforts to broaden Ironshore’s business.”
Paul Giordano, chairman, Ironshore political risk, special risk and surety, added: “Ironshore’s acquisition of Lexon 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.”
David Campbell, president and CEO of Lexon, commented: “Our relationship with Ironshore has been a positive, welcome factor in furthering our expansion goals and robust underwriting capabilities to meet sector demand from our distribution platform."
Ironshore, Insurance, M&A, Lexon Surety Group, Kevin Kelley, Paul Giordano, David Campbell, Bermuda, North America