Core Specialty Insurance Holdings, Inc. and its subsidiaries has completed its acquisition of the MGU/Stop-Loss business of American National Group (ANAT).
The acquisition was previously announced in June earlier this year.
As a result, this acquisition marks Core Specialty’s 14th Specialty Business Unit.
It has also been confirmed that Jim Stelling has joined the company as President of the new Medical Stop-Loss Division, which is maintaining its presence in League City, Texas.
According to the announcement, the business was acquired for cash through the acquisition of 100% of the stock of Standard Life and Accident Insurance Company (SLAICO) and certain reinsurance transactions.
The transaction is also expected to be accretive to Core Specialty’s earnings per share and return on equity in 2024.
Together with the Fronted Casualty Division, Core Specialty would have over $750 million of gross premium income, as well as over $40 million in fee income from these two business units based on FY22 results.
In addition, ANAT will also continue to administer excluded business reinsured by ANAT out of SLAICO which consists of certain life, annuity, and health insurance policies.
“Core Specialty’s vision is to become the leading specialty insurer and finalizing this transaction is another step in the direction of that mission,” commented Jeff Consolino, Core Specialty’s Founder, President, and Chief Executive Officer.
Adding: “The medical stop-loss market has grown at over a 12% annual rate since 2014 according to AM Best market data. Medical Stop-Loss is an attractive class of business to us due to its specialty nature, the fact that it does not correlate with our other specialty classes of business, the ability to generate appropriate underwriting profits and the resultant attractive return on capital. We look forward to having Jim Stelling join Core Specialty and working with his team.”
