TOKYO—Tokio Marine Holdings Inc. said Wednesday that it has
agreed to buy HCC Insurance Holdings Inc. for $7.5 billion, in the
biggest overseas deal ever made by a Japanese nonlife insurance
company.
HCC Insurance is a provider of medical stop loss insurance
through brokers, consultants and third party administrators. It
also specializes in providing short-term medical coverage in the
U.S. and international medical coverage in 130 countries for
individuals and groups.
Under the agreement, Tokio Marine said it would pay a 35.8%
premium on the average price of the insurer's stock held by common
shareholders over the past month.
Tokio Marine, Japan's largest nonlife insurer by market value,
has been very active in overseas acquisitions over the past few
years. It bought U.K. insurer Kiln for about ¥ 95 billion and U.S.
Philadelphia Consolidated Holding Co. for $4.7 billion in 2008. In
its most recent deal, it bought U.S. Delphi Financial Group Inc.
for $2.66 billion.
The transaction is expected to be completed in the fourth
quarter, Tokio Marine said.
Write to Atsuko Fukase at atsuko.fukase@wsj.com
Access Investor Kit for Tokio Marine Holdings, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=JP3910660004
Access Investor Kit for Tokio Marine Holdings, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US8890941086
Subscribe to WSJ: http://online.wsj.com?mod=djnwires