San Francisco-based HIH America Compensation and Liability Insurance Company is selling the renewal rights and other tangible assets associated with its large account California workers’ compensation business to Alaska National Insurance Company.
Effective Oct. 30, HIH America and related companies have ceased writing new business in the U.S. Those companies are: Great States Insurance Company, HIH America Compensation and Liability Company of Illinois, and HIH America Insurance Company of Hawaii Inc.
According to a company press release, HIH America is establishing a managing general agency to continue its California specialty product operations and to ensure the smooth run-off of HIH Insurance. The sale to Alaska National, which is rated “A” by A.M. Best, is aimed at providing continuity of staff, distribution and clients.
“Consolidation within our Australian parent group has necessitated this withdrawal from the United States market,” said HIH America President Peter McCarthy in a prepared statement. “However, we see a positive outlook for California workers’ compensation in particular and we are confident that a strong and committed new entrant like Australia National will enjoy a successful future.”
In August, Standard & Poor’s placed the insurer financial strength and counterparty credit ratings assigned to the core operating entities of HIH Insurance Ltd. on CreditWatch Developing. The move came after the announcement that HIH would be reviewing its personal lines operations with the possibility of entering into a joint venture or sale.
HIH Insurance is a specialty workers’ compensation insurer with $200 million in annual premium revenues generated through its North and South American underwriting companies. Headquartered in San Francisco, HIH also has offices in Sacramento, Irvine, Chicago, Detroit, Milwaukee, Phoenix, Denver, Las Vegas, Honolulu and Buenos Aires.
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