Tokio Marine to buy AIG medical insurance unitOctober 4 2017 by InsuranceAsia News Staff
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.
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