A large specialty insurer has agreed to acquire a business that insures health plans against unexpectedly large losses.
HCC Insurance Holdings Inc., Houston, says it will pay $140 million in cash for the health products division of Allianz Life Insurance Company of North America, Minneapolis, a unit of Allianz A.G., Munich.
HCC hopes to complete the deal by Sept. 30.
The Allianz Life health products division sells stop-loss coverage to self-insured health plans.
The division also sells excess insurance for health maintenance organizations, provider excess for integrated delivery systems, and excess medical reinsurance for small and regional insurance carriers.