October 3, 2017 Tokio Marine Holdings, Inc.

Agreement to acquire medical stop-loss insurance operations from American International Group, Inc. through U.S. subsidiary HCC Insurance Holdings, Inc.

Tokio Marine Holdings, Inc. (President and Group CEO: Tsuyoshi Nagano, the "Company") today announced an agreement to acquire the U.S. medical stop-loss insurance operations ("medical stop-loss") of American International Group, Inc. ("AIG"),

through its wholly owned subsidiary, HCC Insurance Holdings, Inc. (Tokio Marine HCC or "TMHCC").

The transaction is expected to close on October 15, 2017.

  1. Background of the acquisition and the strategic rationale

    1. Medical stop-loss (Note) is TMHCC's largest business line with 2016 gross written premium of approximately $936 Million (JPY 109.0 Billion*), comprising approximately 26% of the overall business portfolio.

      (Note) Medical stop-loss is an insurance product that provides protection to employers with self-funded employee benefit plans.

    2. TMHCC's medical stop-loss has maintained consistent profitability for many years. Due to medical stop-loss' low correlation to TMHCC's other business lines, TMHCC and our entire group expect to achieve further risk diversification and enhance capital efficiency through this acquisition.

    3. Following this transaction, TMHCC's position will become the 3rd largest player from the current 5th in the U.S. medical stop-loss industry, further strengthening its profit base.

    4. Overview of the acquired business

      (1) Primary office locations

      Marlton, New Jersey / Indianapolis, Indiana / Costa Mesa,

      California, U.S.A.

      (2) Nature of business

      

      

      Medical stop-loss Administration and

      programs, etc.

      support

      of

      employers' captive

      (3) Gross written premium

      Approximately USD 350 Million (JPY 40.8 Billion*)

      (2017 projection)

      (4) Number of employees

      Approximately 90 employees

    5. Overview of TMHCC

      6. (1) Company name

      HCC Insurance Holdings, Inc.

      (2) Head office

      Houston, Texas

      (3) Nature of business

      Specialty insurance business such as medical stop-loss, agriculture, directors' & officers' liability, and professional

      liability

      (4) Gross written premium

      Approximately USD 3,643 Million (JPY 424.4 Billion*)

      (2016 actual)

      (5) Shareholder(s)

      100% owned by Tokio Marine & Nichido Fire Insurance

      Co., Ltd.

      (6) Number of employees

      Approximately 2,700 employees

      (* Exchange rate is $1= JPY 116.49 as of December 31, 2016.)

    Tokio Marine Holdings Inc. published this content on 03 October 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 03 October 2017 01:09:01 UTC.

    Original documenthttp://www.tokiomarinehd.com/en/release_topics/release/h10q7e000000ip63-att/171003_en.pdf

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