President and CEO David Campbell Comments on Rating Action by A.M. Best Company

MOUNT JULIET, Tenn., Sept. 4, 2012 /PRNewswire/ -- Lexon Surety Group President and CEO David Campbell comments on the recent rating action by A.M. Best Company:

While the management of Lexon Surety respects and participates in the rating process, in this particular instance, Lexon management and A.M. Best have a clear difference of opinion as to the short to intermediate term loss ratio and earnings prospects of the companies. Of greatest importance to our clients and other constituents is the fact that neither of our companies is in any financial distress whatsoever, and enjoys nearly $200,000,000 in liquidity. Debt at $5,000,000 is interest-only due in 26 years.

At year end 2011, Lexon Surety Group ended its first decade of operation with ten consecutive years of increased capital and surplus, increased T-Listing capacity, and 34,000 clients in a broadly diverse book of business that has very, very limited exposure to conventional contract bonds. Ironically, the rating action occurs at the time that management is projecting the subsidence of the tail of 2007 Great Recession losses and a return to historical profitability levels. The nature of both rating and underwriting is of necessity retrospective and therein lies the difference of opinion.

About Lexon Surety Group

Lexon Surety Group, LLC is a privately held insurance company specializing in the business of surety bonds. As a full service surety bond company, Lexon writes Contract Surety Bonds, Platt/Off-Site/Subdivision Surety Bonds, Commercial – License, Permit and Miscellaneous Surety Bonds, Court – Civil and Probate Surety Bonds, Fidelity Surety Bonds and Environmental Surety bonds for individuals and companies of all sizes. Lexon Surety Group, LLC is comprised of Lexon Insurance Company and Bond Safeguard Insurance Company, both headquartered in Mt. Juliet, TN. Cumulatively they are the 12th largest writer of surety bonds according to The Surety and Fidelity Association of America's 2011 report.

Contact: David Campbell, President

Phone: 615-553-9553 or visit www.LexonSurety.com for more information.

This press release was issued through eReleases® Press Release Distribution. For more information, visit http://www.ereleases.com.

SOURCE Lexon Surety Group, LLC