Swiss Re’s corporate solutions arm is snatching up employer stop loss underwriter IHC Risk Solutions LLC for $152.5 million in cash.
Plans call for closing the purchase during the 2016 first quarter, pending regulatory approval. Swiss Re Corporate Solutions said the purchase, once it closes, will be accretive to earnings already in 2016.
What Swiss Re Corporate Solutions gets: IHC and its direct employer stop loss business, plus its team of experts and business portfolio. That portfolio includes in-force, new and renewal business written with IHC subsidiaries Standard Security Life Insurance Company of New York and Independence American Insurance Company.
IHC Risk Solutions has more than 100 employees in Arizona, Connecticut, Illinois, Indiana and New Jersey.
Under the terms of the agreement, IHC Risk Solutions-produced business will be written through Swiss Re Corporate Solutions’ largest U.S. carrier – Westport Insurance Corp.
Why make the acquisition? Swiss Re Corporate Solutions said the agreement will help it expand its current employer stop loss business in the small- and middle-market self-funded healthcare benefits segment. As well, it gains enhanced underwriting and claims management capabilities, plus stronger product distribution through IHC Risk Solutions’ direct broker and third-party administrator relationships.
Source: Swiss Re Corporate Solutions