Japan-based Tokio Marine Holdings (TMHD) has signed an agreement to acquire US-based HCC Insurance Holdings, for around $7.5bn.
Under the deal, Tokio Marine will purchase all outstanding shares of HCC for $78.00 in cash per share through its wholly-owned subsidiary Tokio Marine & Nichido Fire Insurance.
Established in 1974, HCC operates property and casualty, accident and health, as well as other specialty insurance businesses.
Tokio Marine president Tsuyoshi Nagano said: "HCC is a top tier specialty insurer with market leading underwriting capabilities. Leveraging Tokio Marine’s financial strength and global footprint, HCC will further expand the revenues, profits and capabilities of Tokio Marine."
The acquisition will expand Tokio Marine’s insurance operations in the US, as well as add new lines of business, including accident and health (A&H), directors’ & officers’ liability (D&O), agriculture and other specialty lines across the globe.
HCC underwrites around 100 classes of specialty insurance products through three segments, including North America property and casualty, A&H and international.
North America property and casualty operates a diverse portfolio of specialty businesses, including D&O, agriculture, primary casualty, aviation, surety, sports and entertainment disability/contingency and public risk.
A&H segment provides medical stop-loss and other medical products, while international segment underwrites London market lines, as well as global specialty businesses such as D&O, professional indemnity, surety and credit through Lloyd’s and company platforms.
Subject to customary closing conditions, the deal is expected to complete in the fourth quarter of this year.
Image: Tokio Marine headquarters in Tokyo, Japan. Photo: courtesy of Wiiii.