HCC CLOSES ACQUISITION OF ALLIANZ
HEALTH
HOUSTON (October 2, 2006) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC)
announced today that
the Company had closed its recently announced acquisition of the assets of
Allianz Life Insurance Company’s Health Products Division for a cash
consideration of $140 million. The transaction was completed using existing
capital resources and without incurring any additional debt.
The Health Products Division is a health insurance operation located in
Minneapolis, Minnesota and is one of the leading providers of excess medical
insurance (stop loss) for self insured corporations and groups; excess
insurance for HMO’s; provider excess for integrated delivery systems; excess
medical reinsurance to small and regional insurance carriers; and LifeTrac,
a network for providing organ and bone marrow transplants. The Health
Products Division has been in operation for more than 30 years, currently
writing more than $300 million in premium, and will be consolidated into HCC
Life Insurance Company’s regional office, which is also located in
Minneapolis.
Stephen L. Way, Chairman and Chief Executive Officer of HCC, said, “We are
very excited about this acquisition and the close proximity of both offices,
as well as the similarity of much of their operations, will result in a
smooth integration and transition which has already begun in earnest.” Mr.
Way added, “All of us at HCC welcome the Allianz employees whose
contribution will have a meaningful effect to the results of both HCC Life
and the HCC Group.”
HCC has an important leadership position in the medical stop loss industry
and following this transaction, its subsidiary HCC Life Insurance Company
will write more than $750 million in annual premiums, covering more than 15
million lives for health insurance. For more information see the HCC Life
website at
www.hcclife.com.
HCC is an international insurance holding company and a leading specialty
insurance group since 1974, based in Houston, Texas with offices across the
USA and in Bermuda, England and Spain. HCC has assets exceeding $7.0 billion
and is rated AA (Very Strong) by Standard & Poor’s and A+ (Superior) by A.
M. Best Company.
For more information, visit our website at
www.hcc.com.
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Contact:
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L. Byron Way, Vice
President
HCC Insurance Holdings, Inc.
Telephone: (713) 690-7300
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Forward-looking statements contained in this press
release are made under “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995 and involve a number of risks
and uncertainties. The types of risks and uncertainties which may
affect the Company are set forth in its periodic reports filed with
the Securities and Exchange Commission. |
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