Houston-based HCC Insurance Holdings, Inc. announced a strategic alliance between its subsidiary, U. S. Specialty Insurance Company (USSIC) and SureTec Financial Corp. (SureTec), a Houston based property and casualty insurance holding company whose subsidiaries specialize in underwriting contract and commercial surety and providing related financial services.
SureTec was founded in 1998 by its current Chairman and Chief Executive Officer, John Knox, Jr. Mr. Knox, who is a past Chairman of the National Association of Independent Sureties, was also the founder of Universal Surety of America (Universal) which at the time of its sale, was the largest surety company in Texas. Mr. Knox remained with Universal following its sale in 1994 to Capsure Holdings, Inc., which subsequently became part of CNA Surety.
Subject to the receipt of regulatory approval, USSIC will invest $5 million in a combination of equity and debt, which will provide SureTec with additional capital for its insurance company subsidiary. Following its investment, USSIC will own 23.5% of SureTec. In addition, USSIC will act as co-surety with and for SureTec on larger issues and in those jurisdictions where SureTec is not yet licensed providing a stable platform for SureTec to grow its business.
Was this article valuable?
Here are more articles you may enjoy.