Swiss Re subsidiary acquires ESL underwriter


Swiss Re Corporate Solutions, the primary insurance arm of Swiss Re, has signed an agreement with Independence Holding Company to acquire employer stop loss (ESL) underwriter IHC Risk Solutions for $152.5 million.
The transaction includes IHC Risk Solutions' operations, its team of experts and business portfolio, including in-force, new and renewal business written with IHC subsidiaries, Standard Security Life Insurance Company of New York and Independence American Insurance Company. 
Upon closing, Swiss Re Corporate Solutions expects the transaction to be accretive to earnings already in 2016.
Through this arrangement, Swiss Re Corporate Solutions broadens its current ESL capabilities in the small- and middle-market self-funded healthcare benefits segment. The transaction also enhances the company's underwriting and claims management capabilities, while strengthening its product distribution through IHC Risk Solutions' direct broker and third-party administrator relationships. 
Under the terms of the agreement, business produced by IHC Risk Solutions will be written through Swiss Re Corporate Solutions' largest US carrier, Westport Insurance Corporation, rated "A+ (Superior)" by AM Best and "AA-" by Standard & Poor's.   
"We are very pleased to join forces with IHC Risk Solutions, a firm with an excellent reputation and disciplined underwriting,” said Bob Petrilli, chief executive officer North America of Swiss Re Corporate Solutions.
“Employers will realise tremendous value from our combined capabilities and expertise as they seek to better manage high-cost healthcare benefits and the financial risks associated with catastrophic medical events."
Mike Kemp, president of IHC Risk Solutions, added: "Since its inception, IHC Risk Solutions has focused on growing a world-class employer stop loss operation. Joining Swiss Re Corporate Solutions allows us to advance toward that objective. Our current and future clients will benefit from the financial strength of Swiss Re Corporate Solutions, while we grow our existing operations and core partnerships."
IHC Risk Solutions has more than 100 employees in Arizona, Connecticut, Illinois, Indiana and New Jersey. 

Swiss Re, Swiss Re Corporate Solutions, Independence Holding Company, IHC Risk Solutions, Bob Petrilli, Mike Kemp, Europe, North America

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