Swiss Re Corporate Solutions has agreed to buy IHC Risk Solutions and its direct employer stop loss (ESL) business from Independence Holding Co. for $152.5 million in cash. The transaction includes IHC Risk Solutions’ operations, its team of experts and business portfolio, including in-force, new and renewal business written with IHC subsidiaries, Standard Security Life Insurance Co. of New York and Independence American Insurance Co.
Through this arrangement, Swiss Re Corporate Solutions broadens its current ESL capabilities in the small- and middle-market self-funded healthcare benefits segment and strengthens its product distribution through IHC Risk Solutions’ direct broker and third-party administrator relationships. Under the terms of the agreement, business produced by IHC Risk Solutions will be written through Swiss Re Corporate Solutions’ largest U.S. carrier, Westport Insurance Corp.
IHC Risk Solutions has 100 employees in Arizona, Connecticut, Illinois, Indiana and New Jersey.
The transaction is subject to regulatory approval and is expected to close during the first quarter of 2016.