Tokio Marine to acquire HCC for $7.5bn

Tokio Marine Holdings has revealed it will acquire US speciality insurer HCC Insurance for $7.5 billion.

Through its subsidiary Tokio Marine & Nichido Fire Insurance, Tokio Marine will pay a 35.8 percent premium on the average share price over the past month.

According to Tokio Marine, the acquisition price constitutes a price to book ratio of 1.9 times HCC's book value per share of $41.03 as of March 31, 2015.

The transaction has been unanimously approved by both boards of directors and is expected to complete between October and December 2015.

Tokio Marine entered both the Lloyd’s and US market in 2008, with the acquisitions of Kiln and Philadelphia Consolidated. It also acquired Delphi Financial Group in 2012.

“Throughout our expansion, we have continued to look for high quality acquisition opportunities to achieve further profitable growth and enhance capital efficiency,” Tokio said.