New York-based private equity firm Southport Lane has acquired property and casualty insurer Dallas National Insurance in Texas, for an undisclosed sum.
As per terms of the agreement, which was originally signed in May 2012, the acquirer will invest $50m in Dallas National, increasing its capital and surplus to $107.5m.
The equity firm will also acquire 100% voting control through an investment subsidiary.
The acquisition of Dallas National, which focuses on general liability and workers' compensation firm, has been approved by both the Texas Department of Insurance and the Delaware Department of Insurance.
Southport Re CEO Glenn Weber said the acquisition will enable the company to offer enhanced product and services to policyholders, agents and other business partners, achieving operational excellence and diversifying the company's core underwriting sectors.
Southport Re manages Southport Lane's insurance and reinsurance and alternative risk transfer activities.
After completion of the transaction, Dallas National will continue to operate from its existing location in Texas.
Southport Lane was advised by Sutherland Asbill & Brennan, while the seller was represented by Gardere Wynne Sewell.
Established in 2010, Southport Lane invests in various sectors including insurance and reinsurance.
