Houston-based HCC Insurance Holdings, Inc. announced that it has reached an agreement to acquire St. Paul España, Compañia de Seguros, S.A., The Spanish P/C operations of the St. Paul Companies, headquartered in Madrid.
Stephen L. Way, HCC Chairman and CEO who made the announcement, did not disclose further details concerning the transaction, and indicated that it was still subject to the approval of Spanish regulators.
The deal is expected to close by the end of this year. When it becomes final, HCC said it would change the name of the company to HCC Europe, Compañia de Seguros, S.A., and expected it to remain a market leader in Spain for “contract surety, medical malpractice and professional indemnity lines of business, where rates are rising substantially.”
HCC also noted that MAG Global, an insurance underwriting agency based in Barcelona recently acquired by HCC, “will begin to write their existing Directors and Officers business on behalf of HCC Europe.” Way indicated that “HCC Europe will be our entrance into the lucrative European Union market, where we see a tremendous opportunity to expand the distribution of our specialty lines of business.”
“HCC Europe’s overall gross written premium in 2003 will be approximately Euros 100 million. Current management, lead by General Manager Michel Pascual, will continue to oversee operations reporting to Nick Hutton-Penman, Chief Executive of the London branch office of Houston Casualty Company, HCC’s largest insurance company subsidiary,” the bulletin concluded.
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