Houston-based HCC Insurance Holdings Inc. announced it has reached an agreement to acquire United States Surety Company (USSC) for an undisclosed consideration payable in HCC shares. The transaction is subject to signing a definitive agreement and regulatory approval from the State of Maryland.
USSC, founded in 1996, is a surety company based in Timonium, Md., specializing in contract bonding for small and medium size contractors in Maryland, Pennsylvania and several other contiguous states. Following this transaction, USSC is expected to grow its business to more than $25 million in premium over the next few years.
Richard E. Klein, founder and chief executive officer, will remain with the company following the closing.
Earlier in 2004, HCC announced the formation of HCC Surety Group to specialize in writing all forms of small and medium size surety and credit business.
HCC Surety Group, which expects to write premium in 2005 of more than $100 million, currently consists of American Contractors Indemnity Company based in Los Angeles (www.acicbond.com); the surety business of HCC’s Spanish insurance company subsidiary HCC Europe (www.hcceurope.com); and strategic investments in surety companies SureTec Financial Corp. in Houston, Texas (www.suretec.com) and DeMontfort Insurance Group in the U.K. (www.demontfort.com); and IndemCo, an underwriting agency in Houston, Texas (www.indemco.com).
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