The acquisition of PURE Group is said to position the Japanese insurance group Tokio Marine as key player in the US high-net-worth market


Image: PURE Group to be acquired by Tokio Marine. Photo: courtesy of rawpixel from Pixabay.

Tokio Marine has agreed to acquire Privilege Underwriters (PUI), the holding company of PURE Group of Insurance Companies (PURE Group), for $3.1bn from investors led by Stone Point Capital and KKR.

Based in New York, PURE Group comprises various speciality companies that serve the needs of high-net-worth individuals and families, through 10 offices located across the US.

Details of PURE Group companies

The group of companies include PURE Risk Management – the attorney-in-fact for Privilege Underwriters Reciprocal Exchange (PURE), the Florida-domiciled PURE Insurance, PURE Programs – a managing general underwriter, and Haven Art Group – a fine art services and claims management firm.

According to Tokio Marine, each of the companies involved in the deal barring the reciprocal insurance exchange will become wholly owned subsidiaries of HCC Insurance, a subsidiary of the former.

Altogether, the US insurance group of companies employs around 800 people writing business for high-net-worth persons and families.

The insurance group is claimed to have organically grown by more than 20% in each of the last 12 years and has inforce premiums in excess of $1bn.

The PURE Group offers specialised insurance solutions and gives its customers coverages that include homeowners, automobile, personal excess liability, watercraft, and flood, jewellery, art and collections, fraud, and cyber fraud.

PURE Group president and CEO and founder Ross Buchmueller said: “Tokio Marine has a great track record of acquiring wonderful franchises and making them even better.  We share a common view of culture and purpose and long-term perspective.

“The opportunity to continue our mission unabated with the backing of one of the world’s largest insurers makes this a great marriage.”

Tokio Marine said that the acquisition of PURE Group is in line with its focus on expanding the scale and profitability of its global business as the main growth driver of the overall group. As part of the strategy, the Japanese insurance group acquired US-based HCC Insurance in 2015 for around $7.5bn.

Tokio Marine senior managing executive officer and international business co-head Chris Williams said: “The PURE Group’s member-owned model is unique and forges an alignment of interests focused on delivering a sophisticated insurance solution to carefully selected individuals.

“This acquisition provides unique growth opportunities and portfolio diversification for the Tokio Marine Group.  We look forward to welcoming the PURE Group’s management team and employees to Tokio Marine and to helping them continue to grow this business post-transaction.”

Subject to regulatory approvals and other customary closing conditions, the deal is likely to be closed in the first quarter of next year.