Sompo International Announced Acquisition of Lexon Surety Group

On 1/3/18, Sompo announced an agreement to acquire Lexon Surety Group

• Acquisition of Lexon Surety Group consisted of:
  • Lexon Insurance Company, Bond Safeguard Insurance Company and Fortress National Group
• The transaction closed on June 1, 2018

Lexon is a top ten U.S. surety insurer and the second largest independent writer

• Industry leader with favorable historical underwriting results
• Top products include commercial and contract surety bonds and court and probate bonds
• National platform with a strong geographic footprint and independent agent relationships

Sompo International is a global specialty provider of P&C insurance and reinsurance

• Sompo completed its $6.3 billion acquisition of Endurance in March 2017
• Parent Sompo Holdings is one of the largest P&C insurance groups in the Japanese market
• Strong specialty capabilities across its products with a global distribution network
• Transaction helps Sompo accelerate growth in its U.S. insurance expansion strategy
  • Including a leading position in the highly specialized surety market

Transaction was subject to customary closing conditions including regulatory approvals

• David Campbell continued his role as President of Lexon

TCMA acted as exclusive financial advisor to Sompo International by:

• Assisting in transaction valuation
• Conducting business and financial due diligence
• Advising on the structuring and negotiation of transaction terms

TCMA continues to be a market leader in surety M&A advisory

• Exclusive financial advisor to Markel on its $250mm acquisition of SureTec in 2017