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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 05, 2018 04:03 PM (EST)
A.M. Best has placed under review with positive implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “bbb” of Lexon Insurance Company (Lexon) (Austin, TX) and its affiliate, Bond Safeguard Insurance Company (Bond Safeguard) (Sioux Falls, SD). Lexon and Bond Safeguard are wholly owned subsidiaries of Lexon Surety Group, LLC (LSG).
The Credit Rating (rating) actions follow the announcement that Sompo International Holdings, Ltd. (Sompo International) has entered into a definitive agreement to acquire LSG and its affiliated surety agency operations. The transaction is subject to regulatory approvals and is expected to close in March 2018.
The under review with positive implications status of Lexon and Bond Safeguard is reflective of the financial and operational benefits that both companies should derive from being acquired by a larger, higher-rated organization. The operating subsidiaries of Sompo International maintain an FSR of A+ (Superior) and Long-Term ICRs of “aa-”, with stable outlooks.
The ratings of Lexon and Bond Safeguard will remain under review until the close of the transaction and a review by A.M. Best of the post-transaction details.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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