AM Best raises ratings of Sompo subsidiaries

Sompo International Holdings has announced that AM Best has raised the financial strength ratings of two of its operating subsidiaries, Lexon Insurance Company and Bond Safeguard Insurance Company, from B++ to A+.

Sompo International completed the acquisition of the companies, which were subsidiaries of Lexon Surety Group, on June 1, 2018.  At the time, the company indicated that AM Best had placed the two subsidiaries on ‘positive outlook’.

Sompo International claims that with the acquisition of Lexon it is now one of the ten leading insurers in the US surety market and offers a broad array of commercial and contract surety bonds, court and probate bonds, and US Custom bonds through a nationwide network of agents.

“We are extremely pleased that AM Best has recognized the inherent value that Sompo’s financial strength brings to Lexon’s broad distribution network and product offerings,” said Christopher Sparro, chief executive officer of US Insurance. “The ratings upgrade of Lexon Insurance Company and Bond Safeguard reflects our enhanced ability to profitably grow our surety portfolio.”