In a strategic move to expand its portfolio, Core Specialty Insurance Holdings has acquired American National Group’s Specialty Markets Group (SMG), paving the way for the introduction of Core Specialty’s brand-new financial services division. This purchase is a key growth initiative for Core Specialty as it continues to diversify its offerings in the insurance space.
The transaction positions Core Specialty to form its 16th specialty unit, a testament to the company’s rapid growth trajectory. This new division, which will focus on the lucrative US credit insurance market, will be managed by Mark Walker, who steps in as the division president. SMG brings to the table over six decades of impactful experience and a robust performance history, including an impressive $388 million in direct premiums written in 2023.
Integration and Future Outlook
Core Specialty is set to acquire renewal rights for SMG’s business from American National, involving a payment for business successfully renewed the next year and assuming the related unearned premium reserve. To ensure a seamless handover, the two companies have agreed to a temporary 100% reinsurance contract until Core Specialty can independently manage SMG’s portfolio.
Though the acquisition is notable, American National retains SMG’s existing insurance operations and loss reserves. The strategic move brings over vital SMG personnel to Core Specialty, underscoring a strategy of growth through acquiring profitable and diverse segments in the insurance market. Core Specialty’s president and CEO, Jeff Consolino, celebrates this acquisition, which closely follows another significant gain—the medical stop-loss business—from American National, bolstering Core Specialty’s industry presence.
