Argo Group International Holdings, an underwriter of specialty insurance and reinsurance products, has reached agreement on a strategic investment in SureTec Financial, the parent of contract and commercial surety bonds provider, SureTec Insurance.
According to Argo Group, SureTec will focus on contractor performance bonds and the low limit commercial surety marketplace is a logical complement to its own US surety operation, which already has an active trading relationship with SureTec that is expected to grow following the investment.
Argo Group CEO Mark Watson said they are pleased to expand the existing affiliation with SureTec and particularly John Knox, who they respect as one of the best in the surety business.
"SureTec’s talent in contract and transactional surety provides us with a great partner to leverage the strength of what Argo Group has been building and makes both organizations stronger," Watson said.
The terms of the transaction, which remains subject to regulatory approval and will be concluded through one of Argo Group’s US subsidiaries, were not disclosed.