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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 08, 2016 09:33 AM (EST)
A.M. Best has revised the implications of the under review status to developing from positive for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb” of Lexon Insurance Company (Lexon) (Austin, TX) and its affiliate, Bond Safeguard Insurance Company (Bond Safeguard) (Sioux Falls, SD). Lexon and Bond Safeguard are wholly owned operating subsidiaries of Lexon Surety Group, LLC (LSG).
The Credit Rating (rating) actions follow the announcement that LSG and Ironshore Inc. (Ironshore) have terminated their definitive agreement for Ironshore to acquire the remaining 80% interest in LSG and its affiliated surety agency operations that Ironshore did not already own. Ironshore retains 20% ownership of LSG and quota share and fronting agreements between Ironshore and LSG remain in place.
Lexon and Bond Safeguard’s ratings will remain under review until A.M. Best completes its discussions with the companies’ management teams concerning the financial and operational impacts of the terminated agreement and the companies’ strategic path forward. Any potential rating impact from actual or anticipated changes to Lexon and Bond Safeguard’s credit profile and business plans will also be assessed.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.