The St. Paul to Buy London Guarantee

The St. Paul Companies has finalized a definitive agreement to purchase London Guarantee Insurance Company for $80 million. The transaction is expected to close within three to five months, after regulatory approval has been received and the appropriate closing conditions are secured.

London Guarantee, headquartered in Toronto, is a specialty property-liability insurance company employing 200 which is focused on providing surety products, and management liability, bond, and professional indemnity products. The company generated more than C$65 million in net written premiums in 2000, of which C$43 million were surety premiums, and C$19 million were financial and professional services premiums.

London Guarantee has a Best’s rating of A+ and it has had an average combined ratio of around 80 over the last several years.