Core Specialty Completes Merger with Lancer Insurance coverage Firm

CINCINNATI, Ohio and LONG BEACH, N.Y., Dec. 31, 2021 /PRNewswire/ — Core Specialty Insurance coverage Holdings, Inc. and its subsidiaries (“Core Specialty” or the “Firm”) and Lancer Insurance coverage Firm (“Lancer”), each specialty property and casualty (“P&C”) insurers, introduced at the moment the completion of the merger combining the businesses in a inventory and money transaction, which was beforehand introduced on April 16, 2021. Lancer brings Core Specialty over 35 years of specialty industrial auto experience that extends the capabilities of Core Specialty’s present diversified vary of specialty P&C insurance coverage merchandise. This mix joins two extremely complementary companies with a shared strategic imaginative and prescient to turn into the main specialty P&C insurer. The businesses beforehand partnered in January 2021 to launch a brand new extra transportation program.  The post-merger Core Specialty shall be an extra diversified firm with a lovely enterprise profile, a clear steadiness sheet and over $1.1 billion in fairness capital.

This merger with Lancer marks Core Specialty’s first merger or acquisition for the reason that recapitalization of StarStone U.S. in November 2020. The mixed Lancer and Core Specialty have roughly 600 complete workers. Lancer, which has been a number one supplier of premier specialty insurance coverage options to companies and industrial transportation corporations throughout the U.S. for over 35 years, will retain its model, administration staff and working areas.  Lancer and Core Specialty are working collectively to make sure all policyholders proceed to obtain industry-leading services and products, and to align the mixed operations in the perfect pursuits of shoppers, brokers, brokers, and workers.  Core Specialty operates via a enterprise unit philosophy that enables its Divisions native decision-making for underwriting, claims, and coverage servicing with a excessive diploma of autonomy and full accountability.

Lancer shareholders acquired a mixture of Core Specialty widespread shares, most well-liked shares and money within the merger.  The newly issued Core Specialty most well-liked shares will mandatorily convert into widespread shares upon a Core Specialty preliminary public providing or sure different specified occasions.  As well as, Lancer’s present shareholders will retain the monetary affect of growth on Lancer’s present reserves for losses and loss adjustment bills over a five-calendar 12 months interval inside a specified symmetrical vary.  The transaction is predicted to be accretive to Core Specialty’s earnings per share and return on fairness in 2022. 

Jeff Consolino will proceed to steer the mixed firm as President and CEO and Ed Noonan will proceed as Core Specialty Government Chairman. Dave Delaney, Lancer’s CEO, has joined the Board of Core Specialty and can work intently with Mr. Consolino and senior members of the Lancer and Core Specialty groups within the integration of the companies.  The Core Specialty Board of Administrators will comprise the present Board with the addition of Mr. Delaney.  Matthew Jenkins, Lancer’s President & Chief Working Officer, will function President of Core Specialty’s Lancer Division. 

Jeff Consolino mentioned: “From conception, Core Specialty’s imaginative and prescient has been to turn into the main specialty insurer and the Lancer merger continues our very sturdy progress in our mission.  Core Specialty has the capital to tackle threat, the underwriting expertise in place, a confirmed and decisive management staff and a monitor file of constructing issues occur quick. Collectively and in every of our specialist area of interest enterprise models, we intend to function with sturdy entrepreneurial spirit and drive, velocity, agility, and empowered decision-making. 

Lancer is a pacesetter within the specialty transportation market with a protracted monitor file and a senior administration staff we all know and admire.  Lancer will function as Core Specialty’s ninth specialty P&C enterprise unit.”

Dave Delaney, Co-Founder and CEO of Lancer, mentioned, “All of us at Lancer are excited to hitch forces with Core Specialty. Core Specialty’s administration staff is phenomenal, and our friendship with Jeff Consolino, Ed Noonan and members of Core Specialty’s Board goes again a really good distance. I’ve little doubt Lancer and Core Specialty’s mixed working and monetary assets will create large development alternatives for our shareholders, workers, policyholders and distribution companions.”

“I’ve identified Dave Delaney for over 30 years.  He is a wonderful specialty P&C insurance coverage operator, and I’m excited that he shall be becoming a member of the Core Specialty Board.  We’ve got assembled a Board for Core Specialty comprised of firm founders and enterprise builders which we consider is second to none, and Dave’s abilities will add meaningfully to our Board.  We’re additionally happy and honored that after a long time of constructing Lancer as an impartial, family-controlled enterprise that Dave and his co-shareholders have the arrogance in Core Specialty’s administration, marketing strategy and buyers to alternate their Lancer fairness for the chance to hitch their future prospects with ours,” mentioned Ed Noonan, Government Chairman of Core Specialty.

Core Specialty Replace

For the reason that June 30, 2020 settlement by Core Specialty to recapitalize StarStone U.S., the Firm has grown from 4 enterprise models to 9 via: forming a brand new Extra & Surplus Property Division, establishing a Marine and Power Division from the StarStone London managed enterprise, separating and hiring new management for our Errors and Omissions Skilled Legal responsibility and D&O Administration Skilled Legal responsibility Divisions, initiating an Agriculture Division and finishing the Lancer merger.

Core Specialty’s gross premium written for the twelve-month interval ended September 30, 2021 was $1.7 billion and professional forma for the Lancer merger could be $1.9 billion.

About Core Specialty

Core Specialty affords a diversified vary of property and casualty insurance coverage merchandise for small to midsized companies. From its underwriting places of work spanning the U.S., the Firm focuses on area of interest markets, native distribution, and superior underwriting data; providing conventional in addition to modern insurance coverage options to fulfill the wants of its prospects and brokers. Core Specialty is an insurance coverage holding firm working via StarStone Specialty Insurance coverage Firm, a U.S. extra and surplus strains insurer, and StarStone Nationwide Insurance coverage Firm, a U.S. admitted markets insurer. The Firm is rated A- (Wonderful) by AM Finest. For additional details about Core Specialty, please go to www.corespecialty.com.  

About Lancer Insurance coverage Firm

Lancer Insurance coverage Firm has been a number one supplier of premier specialty insurance coverage options to companies and industrial transportation corporations throughout the U.S. for over 35 years, leveraging a community of over 2,000 dealer relationships. Lancer focuses on auto legal responsibility, bodily injury, cargo and basic legal responsibility coverages. Lancer has constantly acquired an A- (Wonderful) score for monetary power and stability by AM Finest, probably the most acknowledged score techniques within the insurance coverage {industry}. Please go to www.lancerinsurance.com for extra info.

Contact:
Sam Reinhardt
Affiliate Vice President
Prosek Companions
+1 646 818 9244
[email protected]

SOURCE Core Specialty Insurance coverage Holdings

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