To focus on expansion of personal lines division
CAIC Holding Company (CAIC) said that it has sold its surety division to super regional property-casualty insurance carrier The Main Street America Group. The agreement is in effect from January 4, 2010.
As per the terms of the agreement, two members of CAIC’s surety team have joined Main Street America to head up its surety operations in Texas. Sterling Emens will be Main Street America’s director of bond specialty underwriting and Veronica Rivera will be an agency development specialist. Both will be based in Houston.
Luis Bordes, president of CAIC, said: “We have decided to withdraw from the surety business to devote our managerial attention and resources into expansion of our personal lines division at a time when market conditions present us with the opportunity to achieve our long-term return on equity goal and other business objectives.”
Brian Beggs, vice president of bonds at Main Street America, said: “This transaction is a win-win for Main Street America and CAIC. Main Street America continues to expand into new states like Texas that provide solid growth opportunities for our surety business. We look forward to providing the Lone Star State’s surety market with the same high level of service and professionalism that our independent agent-customers have enjoyed in other states where we write surety.”
Main Street America will offer its new Texas independent surety agents ease of doing business through its Main Street Station bonds processing system.