Sompo completes Lexon subsidiary deal
Sompo International Holdings has completed the acquisition of the operating subsidiaries of Lexon Surety Group, which was first announced on January 3, 2018.
Lexon is an independent surety insurer in the US and is comprised of Lexon Insurance Company, Bond Safeguard Insurance Company, and Fortress National Group. AM Best has placed Lexon Insurance Company and Bond Safeguard Insurance Company on ‘positive outlook’ and Sompo expect that the transaction will have a beneficial impact on their financial strength ratings.
Lexon's staff and office locations will be integrated with Sompo International’s Surety business under Christopher Sparro, chief executive officer of US insurance. The combined operation will be led by Brian Beggs, executive vice president, Sompo International Surety who will relocate to Lexon’s headquarters in Mt. Juliet, Tennessee.
Lexon 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 and Sompo US Insurance said that it will continue to offer these same products.
“We are very excited to welcome Lexon into our US insurance operation,” said Sparro. “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 US surety market, significantly contributing to our strategic expansion in the US.”
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.”
