US-based specialty property and casualty insurers Core Specialty Insurance Holdings and Lancer Insurance Company have merged in a stock and cash transaction.
Lancer shareholders received a combination of Core Specialty common shares, preferred shares and cash in the merger. The newly issued Core Specialty preferred shares will mandatorily convert into common shares upon a Core Specialty initial public offering or certain other specified events, the company said.
Core Specialty offers a diversified range of property and casualty (P&C) insurance products for small to midsized businesses. Lancer Insurance Company provides specialty insurance solutions to businesses and commercial transportation companies across the US specialising in auto liability, physical damage, cargo and general liability coverages.
This combination, Core Specialty explained, joins two highly complementary businesses with a shared strategic vision to become the leading specialty P&C insurer. The companies previously partnered in January 2021 to launch a new excess transportation programme.
Lancer is to operate as a separately managed division of Core Specialty, retaining the Lancer brand and its management team.
Current Core Speciality CEO Jeff Consolino will continue to lead the combined company as president and CEO and Ed Noonan will continue as Core Specialty executive chairman.
Consolino said, “Core Specialty has the capital to take on risk, the underwriting talent in place, a proven and decisive leadership team and a track record of making things happen fast. Collectively and in each of our specialist niche business units, we intend to operate with strong entrepreneurial spirit and drive, speed, agility, and empowered decision-making.
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