TOKYO -- Sompo Holdings, a holding company of Japanese insurer Sompo Japan Nipponkoa Insurance, will acquire nonlife insurers of Lexon Surety Group, with the aim of attracting strong infrastructure demand in the U.S. The acquisition amount is estimated at 20-30 billion yen ($177-266 million).
Sompo Holdings will acquire Lexon Insurance, Bond Safeguard Insurance and Fortress National Group. The company plans to complete the acquisition of the 100% stake in the subsidiaries from Lexon through Sompo International, its overseas holding company, by March.
Founded in 2001, Lexon Surety Group specializes in the surety insurance business, which pays penalties to contractees in case large construction and other projects cannot be executed.
Lexon was the second-largest surety insurer in the U.S. in 2016, with premium income of about $150 million. Surety insurance for companies is expected to grow stably in the U.S., amid solid investment in roads, bridges and other infrastructure.