HCC Buys Surety Associates Holding
NU Online News Service, Dec. 11, 3:44 p.m. EST?HCC Insurance Holdings Inc., a Houston-based specialty insurer, is purchasing Surety Associates Holding Co. Inc. and its main subsidiary American Contractors Indemnity Company, a Los Angeles-based surety company.[@@]
American Contractors Indemnity Company is one of the market leaders in providing court, specialty contract, license and permit bonds. Its gross written premium is estimated to be more than $50 million in 2004.
Terms of the transaction have not been disclosed, but the sale is expected to close in the next few weeks, pending regulatory approval, HHC said.
After the acquisition, Robert Thomas, current chief executive at American Contractors Indemnity Company, will continue to oversee operations for that business, HCC said.
HCC chief executive Stephen Way, commenting on his company's acquisition, said the acquisition "will further expand our diversified financial products segment and be immediately accretive." American Contractors Indemnity Company's small business profile and national platform, Mr. Way also noted, will provide HCC the "formula for future growth and success in the surety business."
HCC offers specialized property-casualty insurance and underwrites for other unaffiliated insurers. It also provides related services for commercial and individual clients. Last month, the company posted third-quarter net profit of $38.4 million, a 58 percent increase compared to one year ago.
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