Tokio Marine HCC to acquire AIG's medical business
Specialist insurer Tokio Marine HCC has reached a definitive agreement to acquire the medical stop-loss operations of American International Group (AIG), through its wholly owned subsidiary HCC Life Insurance Company.
The acquisition increases Tokio Marine HCC’s medical stop-loss business to over $1.3 billion of premium.
The acquisition includes renewal rights, inforce business and employees. The acquired operations produce gross written premium of approximately $350 million. Beyond the pure medical stop-loss product, these operations include a $35 million organ transplant book, which is a new addition to Tokio Marine HCC’s medical stop-loss portfolio.
The transaction is expected to close on October 15, 2017.
"Medical stop-loss is our largest and one of our most consistently profitable lines of business in Tokio Marine HCC’s diversified portfolio of specialty insurance businesses," said Christopher JB Williams, Tokio Marine HCC’s chief executive officer.
"This acquisition provides a valuable opportunity to grow and diversify our important medical stop-loss franchise, and we are pleased to welcome new employees to Tokio Marine HCC who will help us to continue to grow the business post-transaction."
Daniel Strusz, HCC Life’s president and chief executive officer, commented: "HCC Life is very pleased with this transaction, which further solidifies our position as one of the largest independent stop-loss providers in the U.S. To our new employees, I extend a warm welcome as we are excited that you are joining our industry leading team at HCC Life. In the months ahead, we will dedicate ourselves to ensuring a seamless transition for policyholders, brokers and employees."
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