Bermuda-based specialty insurer Ironshore Inc. said it will acquire the remaining 80 percent equity interest in Lexon Surety Group and its surety-related affiliates. Ironshore said it will be an all-cash transaction.
Lexon Surety Group is a privately-held insurance holding company specializing in surety bonds. Lexon Surety Group, based in Nashville, Tennessee, is comprised of Lexon Insurance Co. and Bond Safeguard Insurance Co. Lexon underwrites more than $135 million in direct written premium annually in 49 states, Washington, D.C. and U.S. properties located overseas.
Ironshore became a 20 percent owner of Lexon in 2014 following its initial investment in 2013. Ironshore subsidiaries also provide quota share reinsurance and a primary fronting facility on new and renewal business for U.S. commercial and contract surety risks.
Kevin H. Kelley, chief executive officer of Ironshore, said this acquisition reflects close collaboration between Ironshore and Fosun International Limited as they continue to broaden Ironshore’s business.
Fosun International Ltd. completed its acquisition of the remaining 80 percent equity interest in Ironshore last November after acquiring 20 percent last February. Ironshore is now an indirect wholly owned subsidiary of Fosun International Limited.
“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,” said Paul S. Giordano, chairman, Ironshore Political Risk, Special Risk and Surety.
Lexon Surety business includes contract surety bonds, commercial surety bonds, court surety and probate surety bonds, as well as U.S. Customs surety bonds.
Last month, Bloomberg reported that Fosun was weighing a possible initial public offering for Ironshore Inc. or the sale of the insurer.
Currently, Fosun’s insurance business includes investments in Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance, Fidelidade Group, Ironshore and Meadowbrook Insurance Group.
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