Bermuda-based Hiscox Ltd. has acquired – subject to regulatory approval – ALTOHA, Inc. an insurance holding company, and its subsidiaries, including American Live Stock Insurance Company, the premier live stock insurer in the US.
Hiscox also acquired Harding & Harding, Inc., the Group’s affiliated insurance agency as part of the deal.
Hiscox noted that the “purchase price is $55 million which will be satisfied out of internal resources.” Hiscox will acquire net tangible assets of $45 million. Closing is expected in July. ALTOHA is a privately held group, owned by various individuals and its subsidiaries, based in Geneva, Illinois. It has a staff of 23.
“American Live Stock Insurance Company is an admitted insurance company with licenses in all 50 US states,” said the bulletin. “Its main business is animal mortality insurance for cattle and horses. In 2006 it had gross written premium income of $16.9 million and a combined ratio of 80.9 percent. As an affiliated agency, Harding & Harding, Inc. places all of its business with American Live Stock Insurance Company.”
Commenting on the acquisition Bronek Masojada, Chief Executive of Hiscox, stated: “Earlier in the year we said that in order to continue to develop our US business we would acquire an admitted insurance carrier when the right opportunity arose. The acquisition of ALTOHA is an excellent fit on all fronts. It gives us a carrier admitted in 50 states through which we can expand our existing US operations and product offering.”
Topics Mergers & Acquisitions USA Carriers
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