Paolo Taruc
Markel has announced its acquisition of SureTec Financial, to expand its specialty division and US insurance segment.
The agreement is worth approximately $250 million, inclusive of a three-year earn out. Both firms are expected to close the deal by June this year, subject to customary closing conditions, including insurance regulatory approvals.
SureTec will operate as a separate business unit under its current chairman and CEO John Knox Jr.
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“Since its start in 2002, SureTec has grown its surety business prudently and profitably with a diversified product and geographic mix. It has become a top 20 player in the surety market nationwide through its offerings of contract, commercial, and court bonds. As with all our acquisitions, we look forward to exploring opportunities to profitably grow the business," said Markel co-CEO Richard Whitt.
SureTec claims it’s backed by over $200 million in assets. It is rated “A” (Excellent) by A.M. Best, operates in 50 states, and has one international affiliate.
“I look forward to leading what will become Markel Surety and building upon SureTec’s success while benefiting from Markel's financial strength and (re)insurance capabilities, which will position us to better serve our customers and grow our business,” said Knox.
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