HOUSTON, Oct. 02, 2017 (GLOBE NEWSWIRE) -- Tokio Marine HCC today announced it has reached a definitive agreement to acquire the medical stop-loss operations of American International Group, Inc. through its wholly owned subsidiary HCC Life Insurance Company (HCC Life). 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, profitable product addition to Tokio Marine HCC’s medical stop-loss portfolio. The acquisition increases Tokio Marine HCC’s medical stop-loss business to over $1.3 billion of premium, making it one of the top three largest players in the medical stop-loss industry. 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. 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,” said Christopher J.B. Williams, Tokio Marine HCC’s Chief Executive Officer.
“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,” said Daniel A. Strusz, HCC Life’s President and Chief Executive Officer.
HCC Life is a leading provider of medical stop-loss insurance through brokers, consultants and third party administrators. The Company has financial strength ratings of “AA- (Very Strong)” from Standard & Poor’s Financial Services LLC, “A++ (Superior)” from A.M. Best Company, Inc., and “AA- (Very Strong)” from Fitch Ratings. HCC Life is backed by the financial strength of its parent company, HCC Insurance Holdings, Inc. For more information about HCC Life, please visit www.tokiomarinehcc.com/life.
Tokio Marine HCC is the marketing name used to describe the affiliated companies under the common ownership of HCC Insurance Holdings, Inc., a Delaware-incorporated insurance holding company. Headquartered in Houston, Texas, Tokio Marine HCC is a leading specialty insurance group with offices in the United States, the United Kingdom, Spain and Ireland. Tokio Marine HCC’s major domestic insurance companies have financial strength ratings of “AA- (Very Strong)” from Standard & Poor’s Financial Services LLC, “A++ (Superior)” from A.M. Best Company, Inc., and “AA- (Very Strong)” from Fitch Ratings; its major international insurance companies have financial strength ratings of “AA- (Very Strong)” from Standard & Poor’s Financial Services LLC. Tokio Marine HCC is a member of the Tokio Marine Group, a premier global company founded in 1879 with a market capitalization of $31 billion as of December 31, 2016. For more information about Tokio Marine HCC, please visit www.tokiomarinehcc.com.