Thursday, October 19, 2017

Tokio Marine to buy AIG medical insurance unit

Japan’s Tokio Marine Holdings is set to acquire AIG’s medical stop-loss insurance business.

The move extends Tokio Marine’s aggressive hunt for more assets overseas as the domestic market in Japan is expected to thin in the coming years.

Tokio Marine’s plan is to buy the business through its US subsidiary HCC Insurance, a specialty insurer, for over ¥30 billion (US$266 million).

In the US, medical stop-loss insurance covers claims above a certain cost for companies and organisations that finance their own employee insurance plans.

The market is seeing a surge in the demand for such coverage because of growing medical costs owing to technological advancements.

In 2016, Tokio Marine derived premium income from US medical stop-loss coverage of about US$1 billion, an increase of 4% from the previous year.

Part of the amount already covers HCC’s premium income.

Share

Related Articles

Videos

Victor Kuk, Swiss Re

Partner Content

White Papers

Follow InsuranceAsia News

Print Edition

AUTUMN 2017

Roundtable

Convergence of reinsurance and capital management