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The Lone Star in Contract Bonding

Merchants Bonding Company has provided excellent service and results in Texas for more than 40 years.  We enhanced our flexible approach to underwriting and commitment to service by founding Nations Bonding Company, our Austin-based subsidiary.

Nations Bonding Company is licensed to write contract bonds in Texas as a non-dividend company.  Together, Nations and Merchants offer you unmatched underwriting service - we are "the Lone Star" in contract bonding.

Strong Dividends

All Texas contract bonds for all contract accounts with Merchants Bonding Company qualify for a 25 percent*  dividend - with NO change in agent commission.

*Future dividend amounts not guaranteed.

Shared Specialization

Both Nations Bonding Company and Merchants Bonding Company specialize in individual bonds to $15 million. Merchants Bonding has written bonds over $30 million utilizing good surety relationships.

Common Sense Underwriting

• Net worth underwriting approach
• Each account is unique - no minimum requirements 
• Character Counts

Superior Customer Service

Fast turnaround on submissions and bond requests

Lines of credit extended to agents on a per account basis

Agents remain informed during the underwriting process

Competitive Agent Commissions

Our incentive programs might surprise you!

Long-Term Texas Presence

Serving Texas agencies since 1965

Local branch since 1969

Industry Standing

Merchants Bonding is the 19th largest surety bond writer nationwide

Merchants is rated "A" (Excellent) A.M. Best

Nationwide Coverage

Doing business in all 50 states

Nations Bonding is led by:

JOSH PENWELL
Assistant Vice President & Branch Manager

Josh, who joined Merchants in 1996 as a Contract Underwriter, is Assistant Vice President and Southeast Branch Manager in Merchants' Texas office.  He graduated from the University of Texas at Austin with a BBA in Finance.  Josh is a native of Longview, Texas.

Nations Bonding Financial Information

Nations Bonding Company maintains automatic treaty reinsurance, which enables us to write bonds up to $15,000,000.  Nations Bonding Company is rated "A" VII by A.M. Best Company and maintains a Treasury Limit of $346,000.  The companies participating in our reinsurance treaty are as follows: 

Company                                             Best Rating                   Treasury Listing

Everest Reinsurance Co.                     A+ XV                                   $278,974,000.00

Munich Reinsurance America, Inc.      A+ XV                                   $373,206,000.00

Partner Reinsurance Co.                     A+ XV                                    $ 68,646,000.00

Transatlantic Reinsurance Co.            A   XV                                    $401,606,000.00