Ironshore has entered into an agreement to purchase remaining 80% stake in the US insurance holding firm Lexon Surety Group and its surety-related affiliates.
Ironshore secured 20% stake in Lexon in 2014, following its initial investment in 2013.
The company will use cash on hand to acquire the remaining interest in Lexon, which is claimed to be the 12th largest writer specializing in the surety bond business in the US.
Lexon Surety business includes contract surety bonds, commercial surety bonds, court surety and probate surety bonds, as well as US customs surety bonds.
Based in Nashville of Tennessee, Lexon underwrites around $135m in direct written premium annually in 49 states, Washington, D.C. and U.S. properties located overseas.
Ironshore CEO Kevin Kelley said: "our strategic alliance with Lexon over the past three years has benefited Lexon’s producers and customers and we look forward to enhancing our services for them in the years ahead.
Lexon president and CEO David Campbell said: "our relationship with Ironshore has been a positive, welcome factor in furthering our expansion goals and robust underwriting capabilities to meet sector demand from our distribution platform."
The deal is subject to regulatory approvals and other customary conditions.
Last November, Fosun International completed the acquisition of remaining 80% interest in Ironshore, for around $1.8bn.
Ironshore offers broker-sourced specialty property and casualty insurance coverages for varying risks located across the globe.
The company’s subsidiaries also offer quota share reinsurance and a primary fronting facility on new and renewal business for US commercial and contract surety risks.
Image: Ironshore to acquire remaining 80% stake in US insurance holding firm Lexon Surety Group. Photo: courtesy of Chaiwat / FreeDigitalPhotos.net.