Hiscox has bought American Live Stock Insurance and issued a trading update
Hiscox has bought, subject to regulatory approval, ALTOHA an insurance holding company and its subsidiaries American Live Stock Insurance Company and Harding & Harding.
Hiscox said the purchase price was $55m and it will aquire net tangible assets of $45m. Closing is expected in July.
American Live Stock Insurance Company is an admitted insurance company. Its main business is animal mortality insurance for cattle and horses. In 2006 it had gross written premium income of $16.9m.
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, said: "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."
Hiscox has also issued a trading update for the five months to May 31 2007.
Group Revenue
Group gross written premiums to May 2007 increased by 15% on 2006, to £590m (2006: £515m).
Hiscox Global Markets
Gross written premium income increased 5% year on year to £352m (2006: £335 m).
Hiscox UK and Europe
Steady growth in the UK business with a 5% increase in gross written premium to £92m (2006: £87m).
20% increase in European gross written premiums to £36m (2006: £30m).
Hiscox International
Bermudian business has seen a 100% gross written premium increase on 2006, writing £82m (2006:£41m) of external reinsurance business.
Hiscox USA generated £8m (2006:£1m) of gross written premium.
Hiscox said: “The acquisition of American Live Stock Insurance Company brings valuable licences to our US business. Having our own admitted carrier will allow us to access new business and eventually roll out our products across the US."
