Sompo International Announces Acquisition of Lexon Surety Group

TigerRisk Capital Markets & Advisory is acting as exclusive financial advisor to Sompo International

Transaction Overview

On 1/3/18, Sompo announced an agreement to acquire Lexon Surety Group

  • Acquisition of Lexon Surety Group consists of:
    • Lexon Insurance Company, Bond Safeguard Insurance Company and Fortress National Group

Lexon is a top ten U.S. surety insurer and the second largest independent writer

  • Industry leader with favorable historical underwriting results
  • Top products include commercial and contract surety bonds and court and probate bonds
  • National platform with a strong geographic footprint and independent agent relationships

Sompo International is a global specialty provider of P&C insurance and reinsurance

  • Sompo completed its $6.3 billion acquisition of Endurance in March 2017
  • Parent Sompo Holdings is one of the largest P&C insurance groups in the Japanese market
  • Strong specialty capabilities across its products with a global distribution network
  • Transaction helps Sompo accelerate growth in its U.S. insurance expansion strategy
    • Including a leading position in the highly specialized surety market

Transaction is subject to customary closing conditions including regulatory approvals

  • Expected to close in March 2018
  • David Campbell will continue in his role as President of Lexon

TigerRisk Capital Markets & Advisory Role

TCMA is acting as exclusive financial advisor to Sompo International

  • Assisted in transaction valuation
  • Conducted business and financial due diligence
  • Advised on the structuring and negotiation of transaction terms

TCMA continues to be a market leader in surety M&A advisory

  • Exclusive financial advisor to Markel on its $250mm acquisition of SureTec in 2017