Max Buys Indiana Firm To Sell On Admitted Basis

Max Specialty Insurance Company in Richmond, Va., announced it will purchase Indiana-based Commercial Guaranty Casualty Insurance, a unit of Travelers Indemnity Company.

Terms for purchasing the firm, which will serve as a shell company allowing Max to extend admitted operations into all 50 states, were not announced. Max is the U.S. excess and surplus lines unit of Max Capital Group Ltd.

The company said that upon completion of the transaction, which is subject to regulatory approval, Max Specialty's underwriting team will be able to write both admitted and nonadmitted business.

Max said the acquired operation will primarily support the Max Specialty team's previously announced entry into inland and ocean marine underwriting. Max Specialty Insurance Company, the nonadmitted company, is licensed in Delaware and currently approved in 46 other states.

Stephen J. Vaccaro Jr., Max Specialty Insurance Company president and chief executive officer, said: “This acquisition will give the Max Specialty team the ability to write business on a nationwide basis. We expect that ability to enable our producers to write more business for more customers, as some of our specialty products are best served in the admitted marketplace.”

Max Capital Group Ltd., through its operating subsidiaries, provides specialty insurance and reinsurance products to corporations, public entities, property and casualty insurers, and life and health insurers.