Applied Surety Underwriters acquires major portion of Argo’s oil, gas, mining, and coal surety businesses

Applied Surety Underwriters, a subsidiary of Applied Underwriters’ United Risk division, will acquire the majority of Argo Surety group’s in-force coal, oil, gas, and mining business. ASU will immediately assume the management and administration of the exposures acquired, while Argo Surety continues some processing, renewing, and closing of bonds during the transition period, expected to last for less than one year.

Terms of the transaction were not disclosed.

Initially, Argo will front the business under a 100% quota agreement with Applied Surety Underwriters.

“The marketplace itself, from agents and brokers to former Argo insureds, will benefit from the new arrangement as will the new clients of ASU and the newly acquired and managed business structure and delivery.” – Dan Malloy, CEO of United Risk.

“At the core of our business strategy lies our strong commitment to this market realized through the introduction of customized surety solutions, exceptional customer service, and superior engineering and claims handling. While this is now a small subsection of the industries we support, we firmly believe a diversified portfolio is strengthened by adding engineered risk solutions to underpin our overall surety portfolio and that we have the strongest potential platform for its growth. We are optimistic.” – Josh Betz, President of Applied Surety Underwriters.