Core Specialty, Lancer announce merger

Cincinnati-based Core Specialty Insurance Holdings Inc. and Long Beach, New York-based Lancer Financial Group Inc. will merge in a stock and cash transaction, resulting in a post-merger Core Specialty with more than $1 billion in equity capital, the insurers said in a statement Friday.

Terms of the transaction were not announced.

Both parent companies operate specialty property/casualty insurers, Core Specialty and Lancer Insurance Co.

The announcement said Lancer, which reported $32.4 million in net income for 2020 compared with $16.1 million in 2019, brings more than 35 years of specialty commercial auto expertise to Core Specialty.  Lancer reported $186.7 million in net premiums written in 2020.

It said the merger with Lancer marks Core Specialty’s first merger or acquisition since StarStone U.S.’s recapitalization in November 2020.

The combined entity will have about 550 employees. Lancer will retain its brand, management team and operating locations, the statement said.

Jeff Consolino will continue to lead the combined company as president and CEO and Ed Noonan will continue as Core Specialty executive chairman.

Under terms of the transaction, Lancer shareholders will receive a combination of Core Specialty common shares, preferred shares and cash.