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Markel to acquire SureTec Financial Corp. for about $250 million
February 3, 2017
RICHMOND, VAย andย HOUSTON, TX —ย Markel Corporationย (“Markel”)ย andย SureTec Financial Corp.ย (“SureTec”) announced today that they have entered into a definitive agreement forย Markelย to acquire SureTec for approximatelyย $250 million, inclusive of a three-year earn out. The transaction is subject to customary closing conditions, including insurance regulatory approvals, and is expected to close in the first half of 2017.
Following the acquisition, SureTec will operate as a separate business unit, withย John T. Knox, Jr., SureTec’s current Chairman and Chief Executive Officer, leading his seasoned team in his current capacity. The operating unit will become part ofย Markel’sย Specialty division andย US Insuranceย segment.
Richard R. Whitt, Co-Chief Executive Officer ofย Markel, commented, “We are very excited to have John and the SureTec team joinย Markel. Since its start in 2002, SureTec has grown its surety business prudently and profitably with a diversified product and geographic mix. It has become a top 20 player in the surety market nationwide through its offerings of contract, commercial, and court bonds. As with all our acquisitions, we look forward to exploring opportunities to profitably grow the business.”
John T. Knox, Jr., Chairman and Chief Executive Officer of SureTec, remarked, “We could not be happier to be joiningย Markel. I look forward to leading what will become Markel Surety and building upon SureTec’s success while benefiting fromย Markel’sย financial strength and (re)insurance capabilities, which will position us to better serve our customers and grow our business.”
Aboutย Markel Corporation
Markel Corporationย is a diverse financial holding company serving a variety of niche markets. The Company’s principal business markets and underwrites specialty insurance products. In each of the Company’s businesses, it seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the Company are to earn consistent underwriting and operating profits and superior investment returns to build shareholder value. Visitย Markel Corporationย on the web atย markelcorp.com.
Aboutย SureTec Financial Corp.
SureTec is one of the largest privately owned surety companies in the US. SureTec’s largest subsidiary, SureTec Insurance Company, is rated A (Excellent) by A.M. Best. In partnership with professional surety producers and independent agents, the company has offices in Atlanta, Austin, Dallas, Houston, San Antonio, San Diego, and Orange County, California. SureTec operates in 50 states and has one international affiliate.
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