Tokio Marine HCC today announced it has agree to acquire Gulf Guaranty Employee Benefit Services, Inc., a Jackson, Mississippi-based third-party administrator and managing general underwriter that designs, underwrites and administers group gap medical plans for small and mid-sized businesses.
Tokio Marine HCC said group gap medical is a new and profitable specialty product for the company. The acquired operation produces gross written premium of approximately $60 million annually, according to the announcement.
The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close in the third quarter of 2023.
Gulf Guaranty’s group gap medical plan, called MedPlus, pays limited benefits for expenses otherwise covered by an employer’s primary medical plan, but not payable due to the deductible and co-insurance provisions of the primary plan. MedPlus is employer-paid, and every employee enrolled in the employer’s primary medical plan is automatically enrolled in the product.
Today, Tokio Marine HCC – Stop Loss Group covers over 3,500 self-funded employers and union plans for medical stop loss and another 1,000 groups with organ transplant insurance.
Houston-based Tokio Marine HCC is a member of the Tokio Marine Group.
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