Torus Buys First Sealord Surety
Bermuda global specialty insurer Torus has launched a new surety company and has agreed to acquire Pennsylvania-based First Sealord Surety Inc., A.M. Bests news service reported yesterday [Dec. 13].
Torus Surety will provide contract surety to small and midsize construction contractors in the United States. The company also hopes to offer commercial surety products.
The new operation will be led by Antonio C. Albanese, newly appointed senior vice president and head of surety.
Its acquisition of First Sealord will help Torus develop its new platform, with its established surety business and more than 300 agents and brokers throughout the United States, the company said in a statement. First Sealord operates in 38 states and the District of Columbia through 11 gateway offices.
The transaction is pending regulatory approval but is expected to be finalised in January 2012. Once it closes, Torus plans to fully integrate First Sealord with its current operations while ensuring continuity for its customers. Torus also said it will help develop First Sealord’s customer and market relationships.
Torus has been evaluating the surety market in the United States and Latin America as part of its specialty strategy, Torus Group Chief Executive Clive Tobin said in a statement. Torus sees “excellent profitable growth opportunities” in the sector, he said.
Torus also hopes to develop a contract surety business in key emerging markets in Latin America — particularly the growing market of Brazil — through its admitted reinsurer in Brazil and Torus’ other licenses in the region.
The insurer already has a construction, property and energy business in Latin America.
Acquisitions have been part of Torus’ strategy to build a global specialty insurance platform.
In early December, Torus Syndicate 2243 acquired the renewal rights to CV Starr Syndicate 1919′s continental European marine, casualty, financial line and general property business, effective January 1, 2012 And in September, Torus acquired London-based Lloyd’s Syndicate 1301 and its corporate members Broadgate Underwriting Ltd. and Broadgate Underwriting 2010 Ltd. from Clal Insurance Enterprises Holdings Ltd. .
Earlier this week Torus executive Dermot O’Donoghue said the firm’s Bermuda had tailed off in recent years and the firm might redomicile elsewhere.
“More and more the companies have also become part of global operations, Mr. O’Donohoe said. “In other words their own success has spawned their expansion elsewhere, and, as a result the original Bermuda base becomes an increasingly smaller part of their overall operations.
“Even in our own case, we don’t write excess casualty there any more, we’ve sort of exited that, and, following so many ‘cats’ this year, we’ve exited catastrophe reinsurance out of Bermuda, and for the most part opened a ‘play’ with Montpelier [Re],” and otherwise “exited catastrophe reinsurance full stop.
