CGU Insurance Group has announced that it has reached a definitive agreement to sell its surety operations to XL Specialty Insurance Company, including all in-force business and supporting operations. This transaction immediately doubles the writings for XL Surety, with the merged portfolio expected to exceed $50 million in gross written premiums next year.
CGU Insurance Group has announced that it has reached a definitive agreement to sell its surety operations to XL Specialty Insurance Company, including all in-force business and supporting operations. This transaction immediately doubles the writings for XL Surety, with the merged portfolio expected to exceed $50 million in gross written premiums next year.
Says Bob Gowdy, President and CEO of CGU, "Our surety team has worked hard to create a consistently successful niche business. Aligning them with XL is a terrific match - XL has the demonstrated focus and commitment to surety, and together they will lead this new organization to a position of leadership in the surety marketplace."
Adds Daryl LaForge, President of XL Surety, "We believe the combination of XL Surety with CGU represents a good strategic fit. We expect that the existing organizational structures, coupled with a historical focus on different segments of the surety market will allow us to quickly integrate these operations while expanding our service capabilities."
The sale should be completed within 60 days. Until that time, it is business as usual for both companies. Subsequent to the sale, there will be minimal change to the combined operating structure and staffing. It is expected that CGU offices and staff will be transferred to XL Surety. Daryl LaForge presently XL Surety's President, will remain in that role, and CGU's Jim Carroll will be appointed Senior Vice President of Underwriting Operations.