Argo reaches agreement with SureTec
Argo Group International Holdings Ltd has announced that it has reached agreement on a strategic investment in SureTec Financial Corp, the parent of SureTec Insurance Company, a provider of contract and commercial surety bonds.
The 20th largest surety writer in the US, SureTec was founded in 1998 by chairman and CEO John Knox, who has owned and managed surety organisations since 1979. SureTec's focus on contractor performance bonds and the low limit commercial surety marketplace will complement Argo Group's US surety operation, which already has an active trading relationship with SureTec that is expected to grow following the investment.
"Argo Group, in just a few years, has assembled a world-class commercial surety team whose underwriting talent and track records are excellent," said Mr Knox. "We're excited about our new association with Argo Group. I've known and admired senior management of the firm for decades."
Argo Group CEO Mark Watson said: "We are pleased to expand our existing affiliation with SureTec and particularly John Knox, who we respect as one of the best in the surety business. SureTec's talent in contract and transactional surety provides us with a great partner to leverage the strength of what Argo Group has been building and makes both organisations stronger.
“We also see this as an opportunity to invest in a first-rate franchise that will offer an excellent return on Argo Group's capital."
The terms of the transaction, which remains subject to regulatory approval and will be concluded through one of Argo Group's US subsidiaries, were not disclosed.