29 October 2015 Insurance

HCC downgraded after Tokio Marine takeover

The acquisition of US-based HCC Insurance Holdings by Tokio Marine Holdings has been completed.

The aggregate consideration paid in connection with the merger was approximately $7.5 billion.

HCC's common stock will be suspended from trading on the New York Stock Exchange and will subsequently be delisted. The transaction was approved by HCC's stockholders at a special meeting held on September 18, 2015.

As of June 30, 2015, HCC had assets of $11.1 billion and shareholders' equity of $3.9 billion.

In light of the merger however, Fitch has downgraded HCC’s the insurer financial strength (IFS) ratings of HCC's operating subsidiaries to AA- from AA with a stable outlook. All ratings were previously on rating watch negative.

Fitch said the downgrade reflects ownership by a lower-rated parent.

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