Core Specialty Completes Acquisition of American Surety Company

Property and casualty (P&C) insurer Core Specialty has completed the acquisition of American Surety Company (ASC) and Underwriters Surety, Inc.

If you recall, the acquisition was first announced in November 2023.

The completed acquisition establishes Core Specialty’s 17th company^vol a specialized business unit that complements the bonds, loans and guarantees sub-segment and also includes a listing on a treasury exchange providing access to additional bond opportunities.

Additionally, American Surety will now become a new division of Core Specialty Surety with two initial product lines: commercial surety bonds and commercial surety bonds.

40-year industry veteran Tim Martin has been announced as president of the surety division.

For the past 10 years, Martin served as vice president of Great American Insurance Company’s bond division before retiring.

While performing this function, he provided services in the field of management, claims settlement and insurance assistance.

Previously, he practiced law for 24 years, focusing on the areas of investigation and litigating bail and fidelity claims.

It was also confirmed that American Surety will retain its brand, management team and operating locations in Indianapolis, Indiana and Peoria, Illinois.

Moreover, the company was reportedly acquired for stock and cash from American Surety shareholders, who were given the opportunity to acquire additional shares of Core Specialty.

It is important to note, however, that the number of shares received by American Surety shareholders will depend on the financial performance of the bail bonds and commercial surety product lines in the five years following closing.

Jeff Consolino, founder, president and CEO of Core Specialty, commented: “The completion of the acquisition of American Surety advances our goal of becoming a leading specialty insurer by adding our 17^vol specialist business unit. The surety bond market accounted for approximately $10 billion in direct premiums written in 2023.

“We believe that the surety market is a very attractive market segment for us to enter, given its high underwriting profitability over time and entry barriers. We welcome the American Surety team and, under Tim’s leadership, we look forward to adding contract surety capabilities to further grow our surety business.”