Ironshore Inc. has increased its ownership of Mount Juliet, Tennessee-based Lexon Surety Group L.L.C. to 20%, the insurer said.
This is pursuant to an option it received as part of its initial investment in Lexon in 2013, when it acquired a 9.9% equity stake in the surety bond insurer, Hamilton, Bermuda-based Ironshore said Wednesday in a statement.
Lexon writes more than $100 million in direct premiums annually, and is the 12th-largest surety bonds writer in the United States, according to Ironshore.
Ironshore said its subsidiaries will continue to provide quota share reinsurance and primary fronting facility on new and renewal business for most types of U.S. commercial and contract surety risks.
“Increasing our ownership to 20% percent is the next step in building our strategic alliance with Lexon and expanding Ironshore’s participation in the surety market,” said Paul S. Giordano, Ironshore’s chairman for political risk, special risk and surety business, in a statement. “Our latest investment adds to Lexon’s financial strength and positions us well with Lexon to grow their nationwide franchise.”
Ironshore, through its “IronBond” platform, is licensed to underwrite surety in all 50 states and the District of Columbia.