Tokio Marine HCC has agreed to acquire the medical stop-loss operations of American International Group (AIG) including its renewal rights, in-force business and employees, through its wholly owned subsidiary HCC Life Insurance Company (HCC Life).
The acquired business segment produces a gross written premium of about $350 million, increasing Tokio Marine HCC’s medical stop-loss business to over $1.3 billion of premium and making it one of the top three largest players in the medical stop-loss industry.
Christopher Williams, Tokio Marine HCC’s Chief Executive Officer, commented on the transaction; “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.
“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.”
The medical stop-loss segment acquired includes a $35 million organ transplant book, which is a new, profitable product addition to Tokio Marine HCC’s medical stop-loss portfolio.
“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., said Daniel Strusz, HCC Life’s President and Chief Executive Officer; “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.”
The transaction is expected to close on October 15, 2017.
