Applied Surety Underwriters (ASU), a subsidiary of Applied Underwriters’ United Risk division, has announced that it will be acquiring the majority of Argo Surety’s in-force coal, oil, gas, and mining business.
This deal will see ASU taking over the management and administrative duties of the acquired exposures. Meanwhile, Argo Surety will use the transition period to continue some processing, renewing, and closing of bonds.
The transaction is set to kick off with Argo fronting the business under a 100% quota agreement with ASU, according to a company release.
Dan Malloy, CEO of United Risk, expressed optimism about the consolidation, anticipating benefits for a wide range of stakeholders.
“The marketplace itself, from agents and brokers to former Argo insureds, will benefit from the new arrangement as will the new clients of ASU and the newly acquired and managed business structure and delivery,” he said.
Josh Betz, president of ASU, also characterized the acquisition as a catalyst for the company’s growth across several key segments.
“At the core of our business strategy lies our strong commitment to this market realized through the introduction of customized surety solutions, exceptional customer service, and superior engineering and claims handling,” said Betz.
“While this is now a small subsection of the industries we support, we firmly believe a diversified portfolio is strengthened by adding engineered risk solutions to underpin our overall surety portfolio and that we have the strongest potential platform for its growth. We are optimistic.”
Applied Surety Underwriters operates as an independent affiliate of Applied Underwriters. Its approach to surety bonds is focused on the detailed engineering and technical dimensions of projects. It also utilizes carriers that have earned an ‘A-‘ (Excellent) rating from AM Best.
Likewise, United Risk Global is an Applied Underwriters affiliate operating as an international property and casualty insurance underwriting and distribution platform.
What are your thoughts on this story? Feel free to share your comments below.
