Core Specialty Forms Medical Stop Loss Division With Acquisition of Texas’ American National Group

Core Specialty Insurance Holdings, Inc., and its subsidiaries announced today that it will form a medical stop-loss division through the acquisition of the MGU/Stop-Loss business of American National Group. The acquisition will mark Core Specialty’s 13th specialty business unit. Jim Stelling will join Core Specialty as the president of the newly formed medical stop-loss division.

Stelling was most recently the Executive Vice President, Health Insurance and Specialty Markets Group Operations at American National Insurance Company and brings with him over 20 years of experience in the industry. Additionally, during his tenure at ANICO, Jim led health insurance operations and supported the stop-loss business serving as Senior Vice President, Health Insurance Operations and as Vice President of Group and Health Compliance.

The business is being acquired for cash through the acquisition of 100% of the stock of Standard Life and Accident Insurance Company (“SLAICO”) and certain reinsurance transactions. The completion of the transaction will be conditional upon obtaining the required regulatory approvals and is expected to close in the fourth quarter of 2023. The medical stop-loss division will maintain its presence in League City, Texas after the closing. Core Specialty expects the transaction to be accretive to its earnings per share and return on equity in 2024.

The ANAT MGU/Stop-Loss business produced over $300 million of gross premium income in 2022. The business is distributed by managing general underwriters and cedes or retrocedes the majority of the premium and risk associated with the programs underwritten. Stop-loss coverage is used by employers to limit their exposure under self-insured medical plans. Specific stop-loss provides coverage when claims for an individual reach a threshold; after the threshold is reached, the policy reimburses claims paid by the employer up to a coverage limit for each individual. Aggregate stop-loss reimburses the employer once the group’s total paid claims reach a threshold.

Topics Mergers & Acquisitions Texas Profit Loss Excess Surplus