HCC Buys Stake In SureTec Financial
NU Online News Service, June 24, 11:34 a.m. EST?Specialty insurer HCC Insurance Holdings, Inc. said its subsidiary, U.S. Specialty Insurance Company, has purchased a 23.5 percent share in SureTec Financial Corp. for $5 million.
Both firms are based in Houston. SureTec is a property-casualty insurance holding company whose subsidiaries specialize in underwriting contract and commercial surety, and providing related financial services.
HHC said USSIC will invest $5 million in a combination of equity and debt, which will provide SureTec with additional capital for its insurance company subsidiary.
Besides taking a share of SureTec, USSIC will act as co-surety with and for SureTec on larger issues and in those jurisdictions where SureTec is not yet licensed providing a stable platform for SureTec to grow its business, HHC said.
Stephen L. Way, chairman and chief executive officer of HCC, said the agreement with SureTec "provides us an excellent entry point into the surety business with a very experienced and innovative partner."
HHC noted that SureTec has achieved substantial recognition in Texas by creating and administrating a master subcontractor surety program for the $2.5 billion Dallas/Fort Worth Airport Capital Development Plan.
John Knox, Jr., SureTec chairman and CEO commented, "We are fortunate to have HCC as a partner, which will provide us with increased acceptability in the marketplace and help us expand our business."
HCC said it has assets of over $3 billion and a market capitalization of over $1.5 billion.
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