Core Specialty completes merger with Lancer Insurance Company
CINCINNATI, Ohio and LONG BEACH, NY, December 31, 2021 / PRNewswire / – Core Specialty Insurance Holdings, Inc. and its subsidiaries (“Core Specialty” or the “Company”) and Lancer Insurance Company (“Lancer”), both Specialty P&C insurers (“P&C”), announced today ‘hui the completion of the merger of the companies in a share and cash transaction, which had previously been announced on April 16, 2021. Lancer brings to Core Specialty more than 35 years of specialty commercial automotive expertise that extends the capabilities of Core Specialty’s existing diverse line of specialty property and casualty insurance products. This merger brings together two highly complementary businesses with a common strategic vision to become the leading specialist P&C insurer. Previously partnered companies January 2021 to launch a new excess transportation program. Following the merger, Core Specialty will be an even more diversified company with an attractive business profile, a healthy balance sheet and more than $ 1.1 billion in equity.
This merger with Lancer marks the first merger or acquisition of Core Specialty since the recapitalization of StarStone US in november 2020. The Lancer and Core Specialty group have approximately 600 employees in total. Lancer, which has been a leading provider of leading specialty insurance solutions to businesses and commercial transportation companies across the United States for more than 35 years, will retain its brand, leadership team and locations. operating. Lancer and Core Specialty work together to ensure that all policyholders continue to receive leading edge products and services, and to align the combined operations in the best interests of customers, agents, brokers and employees. Core Specialty operates under a business unit philosophy that enables its divisions to make local decisions for underwriting, claims and servicing policies with a high degree of autonomy and full accountability.
Lancer shareholders received a combination of Core Specialty common stock, preferred stock and cash as part of the merger. Newly issued Core Specialty preferred shares will be compulsorily converted into common stock upon a Core Specialty initial public offering or certain other specified events. In addition, Lancer’s existing shareholders will retain the financial impact of the development on Lancer’s existing reserves for losses and loss settlement costs over a period of five calendar years within a specified symmetrical range. The transaction is expected to have a positive impact on Core Specialty earnings per share and return on equity in 2022.
Jeff Consolino will continue to lead the amalgamated company as President and CEO and Ed Noonan will continue as Executive Chairman of Core Specialty. Dave delaney, CEO of Lancer, has joined the Core Specialty Board of Directors and will work closely with Mr. Consolino and senior members of the Lancer and Core Specialty teams as part of the business integration. The Core Specialty Board of Directors will include the current board with the addition of Mr. Delaney. Matthew Jenkins, President and COO of Lancer, will serve as President of the Lancer division of Core Specialty.
Jeff Consolino said, “From inception, Core Specialty’s vision has been to become the premier specialty insurer and the Lancer merger continues our very strong progress in our mission. Core Specialty has the capital to take the risk, the underwriting talent in place, one collectively and in each of our specialized niche business units we intend to operate with a strong entrepreneurial spirit and drive, speed. , agility and empowered decision-making.
Lancer is a leader in the specialty transportation market with a long track record and management team we know and admire. Lancer will operate as Core Specialty’s ninth specialty business unit.
Dave delaney, Lancer Co-Founder and CEO, said, “At Lancer, we are all delighted to join forces with Core Specialty. The leadership team at Core Specialty is exceptional and our friendship with Jeff Consolino, Ed Noonan and the members of the Core Specialty board of directors go back a long way. I am confident that the combined operational and financial resources of Lancer and Core Specialty will create tremendous growth opportunities for our shareholders, employees, policyholders and distribution partners. “
“I knew Dave delaney for over 30 years. He is an excellent P&C insurance operator and I am delighted to have him join the Core Specialty Board. We have assembled a Board of Directors for Core Specialty made up of business founders and business creators who we believe are second to none, and Dave’s talents will make a significant contribution to our board. We are also delighted and honored that after decades of building Lancer as an independent family business, Dave and his co-shareholders have confidence in the management, business plan and investors of Core Specialty to trade their Lancer equity. against the opportunity to join their future prospects with ours ”, declared Ed Noonan, Executive Chairman of Core Specialty.
Update of the main specialty
Since June 30, 2020 Core Specialty agreement to recapitalize StarStone US, the company grew from four business units to nine through: forming a new surplus and surplus property division, creating a marine and energy division out of the business managed by StarStone in London, separating and hiring new officers for our Errors and Omissions Professional Liability and D&O management divisions, initiating an agricultural division and finalizing the Lancer merger.
Core Specialty gross written premiums for the completed twelve month period September 30, 2021 has been $ 1.7 billion and pro forma for the Lancer merger would be $ 1.9 billion.
About the basic specialty
Core Specialty offers a diverse line of P&C insurance products for small and medium-sized businesses. From its underwriting offices across the United States, the Company focuses on niche markets, local distribution and superior underwriting knowledge; offering traditional and innovative insurance solutions to meet the needs of its clients and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a US insurer of excess and surplus lines, and StarStone National Insurance Company, a US insurer in admitted markets. The Company is rated A- (Excellent) by AM Best. For more information on Core Specialty, please visit www.corespecialty.com.
About Lancer Insurance Company
Lancer Insurance Company has been a leading provider of premier specialty insurance solutions to businesses and commercial transportation companies across the United States for more than 35 years, leveraging a network of more than 2,000 broker relations. Lancer specializes in automobile liability, bodily injury, freight and general liability insurance. Lancer has consistently received an A- (Excellent) rating for financial strength and stability by AM Best, one of the most recognized rating systems in the insurance industry. Please visit www.lancerinsurance.com for more information.
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SOURCE Core Specialty Insurance Holdings