Sompo International Holdings Ltd. announced a definitive agreement for one of Sompo’s U.S. subsidiaries to acquire Service Insurance Companies, a U.S. workers compensation insurance specialist.

Financial terms of the deal were not disclosed.

“Together with Service Insurance Companies’ seasoned leadership team and proven workers compensation platform, Sompo is establishing a top-tier flagship for our workers compensation business,” said Chris Sparro, CEO, North America, Sompo Commercial P&C Insurance, in a media statement.

According to the announcement, the acquisition of Service Insurance Companies will broaden Sompo’s underwriting capabilities and presence across products, customer segments and distribution channels within the small and medium-sized enterprise segment, which is a focus for workers comp specialist being acquired. The statement also referenced the “best-in-class” claims capabilities of the Service Insurance Companies, and a presence in the General Agent marketplace.

Brad Davis, current president of Service Insurance Companies, will continue to lead the business for Sompo.

“Together with Sompo, Service Insurance Companies is better positioned to extend the reach from a monoline workers compensation provider into a diversified commercial insurance organization with enhanced scale, capabilities and amplified market relevance,” Davis said.

Information on the Service Insurance Companies website describes the group, which includes Service Lloyds Insurance Company and Service American Indemnity Company, as a privately owned service centric” and safety-oriented carrier, exclusively focusing on workers compensation since 1982. The nationwide carrier has an “A- ” (VIII size category) AM Best Rating.

Sompo International Holdings Ltd., a Bermuda-based holding company, together with its consolidated subsidiaries, operates global property and casualty insurance and reinsurance businesses that provide commercial and consumer property, casualty, and specialty insurance and reinsurance.

Sompo International Holdings Ltd. is an indirect wholly-owned subsidiary of Sompo Holdings, Inc., which carriers ratings of A+ (Superior) from A.M. Best (XV size category) and A+ (Strong) from Standard & Poor’s.

The international holding company announced a bigger deal last summer—the $3.5 billion acquisition of Aspen Insurance Holdings Ltd. by Endurance Specialty Insurance Ltd., a unit of Sompo International Holdings Ltd., which was finalized in early February this year.

The Service Insurance Companies transaction is subject to regulatory and other customary closing conditions.

Guy Carpenter Capital & Advisory, a division of MMC Securities LLC, served as exclusive financial advisor to Sompo. Mayer Brown LLP serves as legal advisor to Sompo.

Howden Capital Markets & Advisory is serving as exclusive financial advisor to Service Insurance Companies. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Service Insurance Companies.

Source: Sompo