Tokio Marine Acquires Specialty Insurer HCC Insurance Holdings for $7.5B

Tokio Marine Holdings, Inc. has agreed to acquire Houston-based specialty insurer HCC Insurance Holdings for $7.5 billion, or $78 per share.

Tokyo-based Tokio Marine says the acquisition “significantly enhances [its] operations in the United States, the largest insurance market in the world, and internationally.”

A Bloomberg report notes the transaction represents the biggest acquisition by a Japanese insurer.

Tokio Marine says HCC represents its “most significant acquisition since it acquired Delphi Financial Group, Inc. in 2012, and Philadelphia Consolidated Holding Corp. and Kiln Ltd. in 2008.”

HCC underwrites more than 100 classes of specialty insurance products, including D&O, agriculture, primary casualty, aviation, surety, sports and entertainment disability/contingency and public risk.

Tokio Marine notes the acquisition gives it access to more insurance markets, and Tsuyoshi Nagano, Tokio Marine president, also speaks highly of HCC’s performance. “Tokio Marine has great respect for the consistent profitability that HCC has achieved under the leadership of its highly experienced management team,” he says. “With shared values and the continued support from the management team, we will build a long and successful partnership together.”    

HCC CEO Christopher J.B. Williams says, “With Tokio Marine, HCC gains an international footprint to expand our diverse portfolio and expertise globally, a financial foundation on which to compete with larger insurers and the opportunity to offer our clients expanded coverages.”

The acquisition is subject to the approval of HCC’s shareholders and regulatory authorities, and is expected to close in Q4 2015.