Hiscox has bought ALTOHA, Inc, an insurance holding company and its subsidiaries American Live Stock Insurance Company, the leading live stock insurer in the US, and Harding & Harding, the affiliated insurance agency.
Subject to approval, the purchase price is $55m which will be satisfied out of internal resources and Hiscox will acquire net tangible assets of $45m. Closing is expected in July.
American Live Stock Insurance Company is licenced in all fifty US states. Its main business is animal mortality insurance for cattle and horses. In 2006 it had gross written premium income of $16.9m and a combined ratio of 80.9%. As an affiliated agency, Harding & Harding places all of its business with American Live Stock Insurance Company.
Commenting on the acquisition Hiscox chief executive Bronek Masojada 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. It gives us a carrier admitted in 50 states through which we can expand our existing US operations and product offering."
