A U.S. unit of Swiss Re has agreed to pay $152 million in cash for IHC Risk Solutions LLC, the employer health stop-loss arm of Independence Holding Company (NYSE:IHC).
See also: 2013: Stop-loss
Swiss Re Corporate Solutions says it will be getting the IHC Risk Solutions operations along with in-force, new and renewal business written by IHC’s Standard Security Life Insurance Company of New York and Independence American Insurance Company subsidiaries.
IHC reported earning $6.5 million before income taxes from the sale of medical stop-loss in the third quarter of 2015 on $54 million in medical stop-loss revenue, up from $6.3 million before taxes on $46 million in revenue for the third quarter of 2014.
The medical loss ratio at the stop-loss unit increased to 71.8 percent for the third quarter, from 67.1 percent for the year-earlier quarter.
The stop-loss operation accounted for about one-third of IHC’s third-quarter revenue.
See also: IHC: Stop-Loss Can Survive PPACA
Swiss Re says it hopes the IHC Risk Solutions deal will help it sell more stop-loss coverage to small and midsize employers. The company says it will write the new stop-loss business produced by the newly acquired unit through its own Westport Insurance Corp. unit.
Bob Petrilli is the chief executive officer for North America at Swiss Re Corporate Solutions, and Mike Kemp is president of IHC Risk Solutions.
In other recent health benefits deal news:
Hub International Ltd. has acquired the assets of Cowan Benefit Services Inc. of Brentwood, Tenn. Cowan sells health insurance, wellness programs and benefits administration services. Matt Cowan, the company’s chief executive officer, will go to work for the Hub Gulf South division and report to Steve Terry, the division’s president, Hub says.
And Agent Review, an insurance agent website company, has obtained an initial round of angel investment funding from a group led by Joe Pulitano, Doug May, Towpath and Anabranch. The company is getting ready to seek investors for its Series A round of investment funding this month. One of the co-founders is Jonas Roeser, who has been active in organizing the 3in4 Need More long-term care (LTC) planning awareness campaigns.
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