Swiss Re Corporate Solutions to acquire leading employer stop loss underwriter, IHC Risk Solutions, LLC
NEW YORK, 5 January 2016 – Swiss Re Corporate Solutions has signed an agreement with Independence Holding Company (NYSE: IHC) to acquire IHC Risk Solutions, LLC and its direct employer stop loss (ESL) business, for an aggregate of USD 152,500,000 in cash.
The transaction includes IHC Risk Solutions' operations, its team of experts and business portfolio, including in-force, new and renewal business written with IHC subsidiaries, Standard Security Life Insurance Company of New York and Independence American Insurance Company. Upon closing, Swiss Re Corporate Solutions expects the transaction to be accretive to earnings already in 2016.
Through this arrangement, Swiss Re Corporate Solutions broadens its current ESL capabilities in the small- and middle-market self-funded healthcare benefits segment. The transaction enhances the company's underwriting and claims management capabilities, while strengthening its product distribution through IHC Risk Solutions' direct broker and third-party administrator relationships. Under the terms of the agreement, business produced by IHC Risk Solutions will be written through Swiss Re Corporate Solutions' largest US carrier, Westport Insurance Corporation, rated "A+ (Superior)" by A.M. Best and "AA-" by Standard & Poor's.
Bob Petrilli, CEO North America of Swiss Re Corporate Solutions, comments: "We are very pleased to join forces with IHC Risk Solutions, a firm with an excellent reputation and disciplined underwriting. Employers will realise tremendous value from our combined capabilities and expertise as they seek to better manage high-cost healthcare benefits and the financial risks associated with catastrophic medical events."
Mike Kemp, President of IHC Risk Solutions, says: "Since its inception, IHC Risk Solutions has focused on growing a world-class employer stop loss operation. Joining Swiss Re Corporate Solutions allows us to advance toward that objective. Our current and future clients will benefit from the financial strength of Swiss Re Corporate Solutions, while we grow our existing operations and core partnerships."
IHC Risk Solutions has over 100 employees in Arizona, Connecticut, Illinois, Indiana and New Jersey. The transaction is subject to regulatory approval and is expected to close during the first quarter of 2016.
About Swiss Re Corporate Solutions
Swiss Re Corporate Solutions offers innovative, high-quality insurance capacity to mid-sized and large multinational corporations across the globe. Our offerings range from standard risk transfer covers and multi-line programmes, to highly customised solutions tailored to the needs of our clients. Swiss Re Corporate Solutions serves customers from over 50 offices worldwide and is backed by the financial strength of the Swiss Re Group. For more information about Swiss Re Corporate Solutions, please visit www.swissre.com/corporatesolutions or follow us on Twitter @SwissRe_CS.
About Independence Holding Company
Independence Holding Company (NYSE: IHC) is principally engaged in the life and health insurance business, and the acquisition of blocks of policies through its insurance company and its marketing and administrative affiliates. The company furnishes medical stop-loss, group major and limited medical, short-term medical, group long-term and short-term disability, group life and various supplemental insurance products.
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