Core Specialty Insurance Holdings, Inc. has announced its strategic acquisition of London Aviation Underwriters (LAU), marking a significant expansion into the aviation and aerospace insurance sector. This acquisition will enhance Core Specialty’s portfolio and operational capabilities, as LAU will operate as a separate division under the Core Specialty umbrella.
Key Takeaways
- Core Specialty will acquire LAU in a stock and cash transaction.
- LAU will become the 18th specialty business unit within Core Specialty.
- Jeff Sutton, President of LAU, will lead the new Aviation & Aerospace Division.
- LAU produced $56 million in gross premiums written in 2023.
- The transaction is expected to close in early 2025.
The acquisition, announced on January 6, 2025, will see LAU integrate into Core Specialty’s existing structure, specifically within its Fronted Programs subsegment, which also includes divisions for fronted casualty and medical stop-loss. This move is expected to bolster Core Specialty’s expertise in aviation and aerospace underwriting and claims management.
Effective January 1, 2025, LAU employees will transition to Core Specialty, while the division will continue to operate under the LAU brand. StarStone National Insurance Company will remain the policy-issuing carrier for LAU’s business, ensuring continuity for existing clients.
Jeff Sutton, who has over 36 years of experience in the industry, will take the helm as President of the new Aviation & Aerospace Division. Sutton’s extensive background includes significant roles at LAU, where he has been instrumental in its growth and success since joining in 2005. His leadership is expected to drive further innovation and expansion within the division.
Jeff Consolino, Core Specialty’s Founder, President, and CEO, expressed enthusiasm about the acquisition, stating, "The acquisition of LAU advances our goal of becoming the leading specialty insurer by adding our 18th specialty business unit. LAU has been our exclusive source of aviation business and produced $56 million in gross premiums written in 2023. We are pleased to continue our relationship and welcome Jeff and the LAU team as employees."
This acquisition follows Core Specialty’s recent growth strategy, which included the purchase of American Surety Co and Underwriters Surety Inc., adding $93 million in gross premiums to its surety division. The company is focused on expanding its specialty insurance offerings to better serve small to mid-sized businesses across various niche markets.
Core Specialty aims to leverage LAU’s decades of experience in aviation and aerospace to create new growth opportunities and enhance its service offerings. With a commitment to superior underwriting knowledge and innovative insurance solutions, Core Specialty is poised to strengthen its position in the specialty insurance market.
As the aviation and aerospace sectors continue to evolve, this acquisition positions Core Specialty to meet the growing demands of these industries, ensuring that they remain competitive and responsive to market changes.
Sources
- Core Specialty to Acquire London Aviation Underwriters and Form Aviation & Aerospace Division, GlobeNewswire.
- Core Specialty to acquire London Aviation Underwriters in strategic deal | Insurance Business America, Insurance Business America.
- Core Specialty to acquire London Aviation Underwriters | Insurance Insider US, Insurance Insider US.