- Core Specialty’s subsidiary, American Surety Company, recently upgraded Financial Strength Rating from AM Best to A (Excellent) and Financial Size Category of XIII
- American Surety Company obtained Treasury Listing of $46 million
- Executed a program management agreement with Distinguished Programs
CINCINNATI, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Core Specialty Insurance Holdings, Inc. and its subsidiaries (“Core Specialty” or the “Company”) announced today that it has expanded its surety offering by entering the contract surety market. The formation of the Surety division as a component of the Company’s Bond, Credit & Guarantee subsegment was announced on November 1, 2023 and American Surety Company became a subsidiary of Core Specialty on May 31, 2024. Following its acquisition, American Surety Company received an upgraded Financial Strength Rating to A (Excellent), Financial Size Category of XIII from AM Best, and obtained an expanded underwriting limitation of $46 million with the Department of Treasury. As of June 30, 2024, American Surety Company’s surplus has increased to $461 million. With these improved financial metrics, Core Specialty is excited for its future opportunities in the surety marketplace.
Also being announced today, Core Specialty has entered into a program management agreement with Distinguished Programs Insurance Brokerage LLC (“Distinguished”) to offer customized contract bonding solutions for businesses in diverse industries. The program team, led by Trevor Hash, has launched operations and will begin underwriting in the fourth quarter of this year.
Trevor leads the new program with almost 30 years of experience in the surety industry. Supported by a skilled team of underwriters, his leadership enhances Distinguished’s ability to make a meaningful entrance into the surety market with Core Specialty. American Surety Company will be the bond issuing carrier and will service claims.
Jeff Consolino, Core Specialty’s Founder, President, and Chief Executive Officer, said, “Following our announcement of the acquisition of American Surety Company, these accomplishments support our intention to become a significant factor in the surety marketplace under the leadership of Tim Martin. According to AM Best market data, the surety market included approximately $10 billion in direct premiums written in 2023 and produced a 10-year average combined ratio of 71%. We continue to believe that the surety market represents a highly attractive segment for us to enter given its strong underwriting profitability over time and barriers to entry, and our entry into the contract surety market is in support of that belief. With the expertise and industry relationships present with Tim and with Trevor and his team, we are pleased to add contract surety to our Surety Division’s current product offerings.”
About Core Specialty
Core Specialty offers a diversified range of specialty insurance products for small to mid-sized businesses. From its underwriting offices spanning the U.S., the company focuses on niche markets, local distribution, and superior underwriting knowledge; offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess & surplus lines insurer, StarStone National Insurance Company, Lancer Insurance Company, Lancer Insurance Company of New Jersey and American Surety Company, each of which is a U.S. admitted markets insurer, and Standard Life and Accident Insurance Company, a life, accident, and health insurer. For further information about Core Specialty, please visit www.corespecialty.com.
