Core Specialty Insurance Holdings Inc. and its subsidiaries, and Lancer Financial Group Inc., the parent company of Lancer Insurance Company, both specialty property and casualty insurers, have signed a definitive agreement to combine the companies in a stock and cash transaction. The merger with Lancer marks Core Specialty’s first merger or acquisition since the recapitalization of StarStone U.S. in November 2020.
Jeff Consolino will continue to lead the combined company as president and CEO and Ed Noonan will continue as Core Specialty executive chairman. Dave Delaney, Lancer’s CEO will join the board of Core Specialty at closing and will work closely with Consolino and senior members of the Lancer and Core Specialty teams in the integration of the businesses. Matthew Jenkins, Lancer’s president and COO, will serve as president of Core Specialty’s Lancer division after the closing.
Consolino said, “Core Specialty’s vision is to become the leading specialty insurer and the Lancer merger continues our very strong progress in our mission. Core Specialty has the capital to take on risk, the underwriting talent in place, a proven and decisive leadership team and a track record of making things happen fast. Collectively and in each of our specialist niche business units, we intend to operate with strong entrepreneurial spirit and drive, speed, agility, and empowered decision-making.
Delaney added, “All of us at Lancer are excited to be joining forces with Core Specialty. Core Specialty’s management team is exceptional and our friendship with Jeff Consolino, Ed Noonan and members of Core Specialty’s Board goes back a very long way. I have no doubt Lancer and Core Specialty’s combined operating and financial resources will create tremendous growth opportunities for our shareholders, employees, policyholders and distribution partners.”
Noonan concluded, “I have known Dave Delaney for over 30 years. He is an excellent specialty P&C insurance operator and I am excited that he will be joining the Core Specialty board. We have assembled a board for Core Specialty comprised of company founders and business builders which we believe is second to none and Dave’s talents will add meaningfully to our board.”
Lancer is being advised by Waller Helms Advisors and Dowling Hales as financial advisors, and Nixon Peabody LLP as transaction counsel. Core Specialty is being advised by J.P. Morgan as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as transaction counsel.