Bermudian-based Sompo International’s US insurance platform has reached an agreement to buy the operating subsidiaries of Lexon Surety Group.

Lexon, the second largest independent surety insurer in the US, is comprised of Lexon Insurance Company, Bond Safeguard Insurance Company, and Fortress National Group LLC.

The group has been offering a broad array of commercial and contract surety bonds, court and probate bonds, and US Custom bonds through a nationwide network of agents since 2001.

Christopher Sparro, chief executive officer of US Insurance at Sompo International, who will be appointed chairman of the Lexon board, said: “Lexon has a strong reputation in the surety market, and this acquisition will position us to substantially accelerate the growth of our US primary surety portfolio and our presence in this specialised market.

“Lexon’s team brings to the table strong distribution relationships with a nationwide network of agents and brokers as well as specialty expertise across their surety and bond offerings, which are highly complementary to Sompo International’s existing product capabilities.”

Jack Kuhn, CEO of global insurance at Sompo International, said: “This acquisition is another step in the ongoing expansion of our US insurance capabilities into markets that complement our current operations.

Lexon’s staff and office locations will be retained. Brian Beggs of Sompo International will become the CEO of Lexon. The transaction is expected to close in March 2018, after regulatory approvals.

TigerRisk Capital Markets & Advisory served as financial advisor and Cadwalader, Wickersham & Taft LLP served as legal advisor to Sompo International. Hales Securities, LLC served as exclusive financial advisor and Bingham Greenebaum Doll LLP served as legal adviser to Lexon.