Applied Surety Underwriters (ASU), part of Applied Underwriters’ United Risk division, has purchased the majority of Argo Surety’s in-force business related to the coal, oil, gas and mining sectors.
Financial details of the deal were not shared.
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Argo Surety, a fully owned subsidiary of Brookfield Reinsurance, provides tailored solutions to address the specific requirements of brokers and clients across various industries.
Industries that Argo Surety serves include construction; finance; metals; mining; renewable energy, utilities and telecommunications; real estate; retailers; technology; transportation; and waste management, among others.
The company offers solutions for big and small projects to fit customers’ commercial and contract surety requirements.
Following the acquisition, ASU, with immediate effect, will take over the management and administration of the acquired exposures.
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By GlobalDataDuring the transition period, which is expected to last less than one year, Argo Surety will continue some processing, renewing, as well as closing of bonds.
For the initial period of this transaction, Argo is planning to front the business under a 100% quota agreement together with ASU.
Commenting on the consolidation, United Risk CEO Dan Malloy said: “The marketplace itself, from agents and brokers to former Argo insureds, will benefit from the new arrangement as will the new clients of ASU and the newly acquired and managed business structure and delivery.”
ASU president of Josh Betz added: “At the core of our business strategy lies our strong commitment to this market realised through the introduction of customised surety solutions, exceptional customer service, and superior engineering and claims handling.
“While this is now a small subsection of the industries we support, we firmly believe a diversified portfolio is strengthened by adding engineered risk solutions to underpin our overall surety portfolio and that we have the strongest potential platform for its growth.”
Last year, in August, ASU signed an exclusive strategic alliance with reinsurer SiriusPoint for major market expansion.
