Torus to Enter Surety Market With Buy of First Sealord

NU Online News Service, Dec. 14, 2:16 p.m. EST

Global specialty insurer Torus says it is entering the surety market with the acquisition of First Sealord Surety Inc., and the subsequent launch of Torus Surety.

“As part of Torus' specialty strategy we have been evaluating the surety markets in the U.S. and Latin America for some time and we see excellent profitable growth opportunities,” says Clive Tobin, group chief executive of Torus, in a statement.

Torus Surety will be led by Antonio C. Albenese, who was named senior vice president, head of surety. He was formerly with Selective Insurance, where he was head of the surety and fidelity unit.

With the buy of First Sealord, Torus gains over 300 agents and brokers. The mono-line insurer of surety bonds specializes in construction surety for the small- and medium-size construction contractor.

Torus says Torus Surety will  focus on the same market segment but, in time, will also offer commercial surety products and it will look to develop contract surety business in emerging markets in Latin America—especially Brazil, where Torus has an admitted reinsurer, Torus Specialty.

“Torus is already in the construction, property and energy business in Latin America through various legal entities,” says Naveen Anand, chief executive of Torus Americas. “With the addition of surety capabilities we see great prospects to expand our business on all fronts with a particular focus on Brazil, which is an exciting and growing market.”

First Sealord is licensed in more than half the U.S., according to its website.

“First Sealord presents a tremendous platform from which to advance Torus' development in this area and across all of our specialty lines,” Tobin adds.

The transaction should be finalized in January, Torus says.