Tokio Marine to Buy HCC Insurance for $7.5 Billion

TOKYO—Tokio Marine Holdings Inc. said Wednesday that it has agreed to buy HCC Insurance Holdings Inc. for $7.5 billion, in the biggest overseas deal ever made by a Japanese nonlife insurance company.

HCC Insurance is a provider of medical stop loss insurance through brokers, consultants and third party administrators. It also specializes in providing short-term medical coverage in the U.S. and international medical coverage in 130 countries for individuals and groups.

Under the agreement, Tokio Marine said it would pay a 35.8% premium on the average price of the insurer's stock held by common shareholders over the past month.

Tokio Marine, Japan's largest nonlife insurer by market value, has been very active in overseas acquisitions over the past few years. It bought U.K. insurer Kiln for about ¥ 95 billion and U.S. Philadelphia Consolidated Holding Co. for $4.7 billion in 2008. In its most recent deal, it bought U.S. Delphi Financial Group Inc. for $2.66 billion.

The transaction is expected to be completed in the fourth quarter, Tokio Marine said.

Write to Atsuko Fukase at [e-mail]

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