Lancer Insurance Co., a commercial auto insurer, has agreed to merge with another specialty insurer, Core Specialty, where it will operate under its own brand name as Core Specialty's ninth property / accident division.
The deal marks the first merger or acquisition of Core Specialty since the recapitalization of StarStone U.S. in November 2020. The combined Lancer and Core Specialty will have more than $ 1 billion in equity and approximately 550 employees.
The transaction is expected to contribute to Core Specialty's earnings per share and return on equity in 2021. The merger was unanimously approved by the boards of both companies and is expected to be completed in the third quarter of 2021.
The two companies previously worked together in January 2021 to launch a surplus transportation program.
Lancer will bring to Core Specialty over 35 years of specialized commercial automotive expertise that will expand the reach of Core Specialty's existing portfolio of specialty P / C insurance.
Core Specialty said it operates under a business unit philosophy that enables the divisions to make local decision-making for insurance, claims and policy maintenance.
Dave Delaney, Lancer CEO, will join the Core Specialty board of directors upon closing and will work with teams to integrate the companies.
Matthew Jenkins, Lancer's president and chief operating officer, will serve as president of Core Specialty's Lancer division upon closure.
Jeff Consolino will continue to lead the combined company as president and chief executive officer and Ed Noonan will remain as Core Specialty Executive Chairman.
"Core Specialty's vision is to become the leading specialty insurer and the merger with Lancer continues our very strong progress in our mission," said Consolino.
Since the June 30, 2020 agreement by Core Specialty to recapitalize StarStone US, the company has grown from four business units by forming a surplus and surplus real estate division, establishing a Marine and Energy division, separating and hiring of new leadership for its mistakes and omissions, professional liability and directors and officers, corporate liability divisions and the establishment of an agricultural division.
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Core Specialty operates through StarStone Specialty Insurance Co., a US deductible and excess line insurer, and StarStone National Insurance Co., a US recognized market insurer.
Lancer Insurance Co. has served commercial transport companies for over 35 years and specializes in auto liability, physical damage, freight and general liability coverage. The insurer has a network of 2,000 brokers.
Lancer is advised by Waller Helms Advisors and Dowling Hales as financial advisers and Nixon Peabody LLP as transaction adviser. Core Specialty is advised by J.P. Morgan as Financial Advisor and Skadden, Arps, Slate, Meagher & Flom LLP as Transaction Advisor.
Source: Core Specialty
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