NU Online News Service, March 5, 1:06 p.m. – SAFECO Corp., Seattle, has agreed to acquire a medical excess-loss business and a small block of group life insurance from Swiss Reinsurance Company, Zurich.
The value of the deal was not disclosed. SAFECO hopes to complete it in June.
The excess-loss unit, which protects self-funded employee health plans from catastrophic losses, collects about $240 million in annual premium revenue, and the group-life block generates about $10 million in annual premium revenue, SAFECO says.
Swiss Re itself ended up with the excess-loss and group-life business after it acquired Lincoln Re from Lincoln Financial Corp., Fort Wayne, Ind., according to SAFECO spokesman Paul Hollie.
SAFECO acquired another block of U.S. excess-loss business from the ING Groep N.V., Amsterdam, in 1999. SAFECO wrote a total of $280 million in excess-loss coverage for self-funded health plans in 2001, the company says.