Tokio Marine HCC, a member of the Tokio Marine Group has signed a definitive agreement to acquire Gulf Guaranty Employee Benefit Services, Inc. (Gulf Guaranty).
Gulf Guaranty is a third-party administrator and managing general underwriter that designs, underwrites and administers group gap medical plans for small and mid-sized businesses.
The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close in Q323.
Moreover, Gulf Guaranty offers a group gap medical plan called MedPlus that pays limited benefits for expenses otherwise covered by an employer’s primary medical plan, but not payable due to the deductible and co-insurance provisions of the primary plan.
According to the announcement, the medical plan is employer-paid, and every employee enrolled in the employer’s primary medical plan is automatically enrolled in the product.
Additionally, group gap medical coverage is a new, profitable product addition to Tokio Marine HCC. The acquired operation produces GWP of approximately $60 million annually.
Susan Rivera, Tokio Marine HCC Chief Executive Officer, commented: “Group gap medical coverage is an attractive addition to Tokio Marine HCC’s large and diversified portfolio of specialty insurance products.
“This acquisition provides a complementary niche product to our first-class medical stop loss franchise. We are excited about the value proposition this product offers to employers and believe there is tremendous potential to build upon our solid foundation in the health insurance market.”
Jay Ritchie, President of Tokio Marine HCC – Stop Loss Group, said: “Tokio Marine HCC – Stop Loss Group believes that MedPlus enhances our existing business, and we enthusiastically welcome Gulf Guaranty’s employees to the Tokio Marine HCC family. This addition expands our product offering while strengthening our position in the health insurance industry.
“Looking ahead, we will work hard to ensure a seamless transition for brokers, policyholders and the members covered under MedPlus policies, and we will provide the support and resources necessary to successfully grow the business in the future.”
In other news, new data released by Tokio Marine HCC emphasises the growing popularity of Transaction Risk Insurance and its effectiveness in paying claims, contributing to increased confidence among industry professionals.
