Ironshore Surety purchases remainder of Lexon Surety

Ironshore Completes Lexon Surety Acquisition

Ironshore Inc. has finalized its acquisition of Lexon Surety Group by purchasing the remaining 80% equity stake, completing a full buyout through an all-cash transaction. Lexon, a Nashville-based surety bond provider with a strong footprint across 49 states and a reputation for serving contractors and businesses with lower credit profiles, now operates fully under Ironshore’s ownership. The deal reflects Ironshore’s strategic expansion in the surety market, supported by its parent company, Fosun International Limited, which fully acquired Ironshore in late 2015. Lexon’s diverse surety portfolio—including contract, commercial, court, probate, and U.S. Customs bonds—strengthens Ironshore’s surety platform and positions the combined operation for continued growth in the U.S. and international markets.

By Gary Swiftbonds, nationally recognized expert in surety bonds, bid bonds, and performance bonds.

Below is an article that discusses the remainder of the purchase of Lexon Surety by Ironshore surety.  This finalizes the sale of Lexon, which is a large surety bond provider, especially for companies with lower credit ratings – and one that we’ve used often for our clients.

See the article below for more or our bid bond page here.

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https://www.insurancejournal.com/news/national/2016/04/11/404757.htm

Bermuda-based specialty insurer Ironshore Inc. said it will acquire the remaining 80 percent equity interest in Lexon Surety Group and its surety-related affiliates. Ironshore said it will be an all-cash transaction.

Lexon Surety Group is a privately-held insurance holding company specializing in surety bonds. Lexon Surety Group, based in Nashville, Tennessee, is comprised of Lexon Insurance Co. and Bond Safeguard Insurance Co. Lexon underwrites more than $135 million in direct written premium annually in 49 states, Washington, D.C. and U.S. properties located overseas.

Ironshore became a 20 percent owner of Lexon in 2014 following its initial investment in 2013. Ironshore subsidiaries also provide quota share reinsurance and a primary fronting facility on new and renewal business for U.S. commercial and contract surety risks.

Kevin H. Kelley, chief executive officer of Ironshore, said this acquisition reflects close collaboration between Ironshore and Fosun International Limited as they continue to broaden Ironshore’s business.

Fosun International Ltd. completed its acquisition of the remaining 80 percent equity interest in Ironshore last November after acquiring 20 percent last February. Ironshore is now an indirect wholly owned subsidiary of Fosun International Limited.

“Ironshore’s acquisition of Lexon is a culmination of our plan to enter the surety market through an established company with a strong customer franchise, diverse product mix and capable management team,” said Paul S. Giordano, chairman, Ironshore Political Risk, Special Risk and Surety.

Lexon Surety business includes contract surety bonds, commercial surety bonds, court surety and probate surety bonds, as well as U.S. Customs surety bonds.

Last month, Bloomberg reported that Fosun was weighing a possible initial public offering for Ironshore Inc. or the sale of the insurer.

Currently, Fosun’s insurance business includes investments in Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance, Fidelidade Group, Ironshore and Meadowbrook Insurance Group.

Frequently Asked Questions

What does it mean that Ironshore acquired the remaining 80% of Lexon?

It means Ironshore now fully owns Lexon Surety Group (100% ownership), which can streamline decision-making, underwriting strategy, and long-term product planning under one parent structure.

Does this acquisition change how Lexon surety bonds are issued or serviced?

Typically, day-to-day issuance and servicing continue as usual, but over time you may see changes in underwriting guidelines, appetite, pricing, or administrative processes as operations align under the parent company.

Why does this matter to contractors or businesses seeking surety bonds?

Ownership changes can influence capacity, underwriting flexibility, and the speed of approvals—especially for applicants with challenged credit profiles or higher-risk projects.

Will existing Lexon bondholders need to replace their bonds because of the acquisition?

In most cases, no. Existing bonds generally remain valid through their term, but renewals may be evaluated under updated internal guidelines.

Does Lexon still offer the same types of surety bonds after the acquisition?

Lexon’s core lines—contract, commercial, court, probate, and specialty surety—generally continue, though product focus may evolve based on the parent company’s strategy.

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