Core Specialty Insurance has announced its expansion into the contract surety market, marking an extension of its surety offerings.
This move follows the establishment of its surety division as part of the bond, credit and guarantee subsegment in November 2023 and the subsequent acquisition of American Surety Company in 2024.
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The new division represented the 17th specialty business unit within Core Specialty, further diversifying its services.
American Surety Company, now a subsidiary of Core Specialty, has seen an increase in its underwriting capacity to $46m with the Department of the Treasury.
As of 30 June 2024, American Surety Company’s surplus reached $461m, positioning Core Specialty for growth in the surety marketplace.
Reflecting on these developments, Core Specialty expressed optimism about its prospects in this sector.
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By GlobalDataCore Specialty also signed a programme management agreement with Distinguished Programs Insurance Brokerage.
This partnership aims to deliver tailored contract bonding solutions to a wide range of industries.
The programme, spearheaded by Trevor Hash, is set to commence operations and underwriting activities in the fourth quarter of the current year.
Hash brings nearly three decades of industry experience to the role.
American Surety Company will act as the bond issuing carrier and handle claims services to ensure an integration of operations within the expanded offering.
Core Specialty founder, president and CEO Jeff Consolino 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.
“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.”
