25th Jun 2007 07:03
Hiscox Ltd25 June 2007 Hiscox acquires American Live Stock Insurance Company International specialist insurer grows its US business with purchase of admitted carrier Hamilton, Bermuda - Hiscox Ltd ("Hiscox"), the international specialist insurer,announces the acquisition, subject to regulatory approval, of ALTOHA, Inc.("ALTOHA") an insurance holding company and its subsidiaries American Live StockInsurance Company, the premier live stock insurer in the US, and Harding &Harding, Inc. the affiliated insurance agency. The purchase price is $55 millionwhich will be satisfied out of internal resources and Hiscox will acquire nettangible assets of $45 million. Closing is expected in July. ALTOHA is aprivately held group owned by various individuals and its subsidiaries are basedin Geneva, Illinois. It has a staff of 23. American Live Stock Insurance Company is an admitted insurance company withlicences in all fifty US states. Its main business is animal mortality insurancefor cattle and horses. In 2006 it had gross written premium income of $16.9million and a combined ratio of 80.9%. As an affiliated agency, Harding &Harding, Inc. places all of its business with American Live Stock InsuranceCompany. Commenting on the acquisition Bronek Masojada, Chief Executive of Hiscox, said:"Earlier in the year we said that in order to continue to develop our USbusiness we would acquire an admitted insurance carrier when the rightopportunity arose. The acquisition of ALTOHA is an excellent fit on all fronts.It gives us a carrier admitted in 50 states through which we can expand ourexisting US operations and product offering. Ends For further information please contact: Hiscox LtdRobin Mehta, Company Secretary +1 44 1278 8300Kylie O'Connor, Head of Communications, London +44 (0) 20 7448 6656 MaitlandPhilip Gawith +44 (0) 20 7379 5151Richard Farnsworth +44 (0) 20 7379 5151 Notes to editors About Hiscox Hiscox, headquartered in Bermuda, is a specialist insurance group listed on theLondon Stock Exchange. There are three main underwriting parts of the Group -Hiscox Global Markets, Hiscox UK and Europe, and Hiscox International. HiscoxGlobal Markets underwrites mainly internationally traded business in the LondonMarket - generally large or complex business which needs to be shared with otherinsurers or needs the international licences of Lloyd's. Hiscox UK and HiscoxEurope offer a range of specialist insurance for professionals and businesscustomers, as well as high net worth individuals. Hiscox International includesoperations in Bermuda, Guernsey and the USA. For further information, visit www.hiscox.com About Hiscox USA Hiscox USA opened for business in March 2006 and is focused on rolling outHiscox's specialist products for small and mid-size US businesses. Hiscox USAproducts can be purchased via US-based local and regional brokers. The companyhas two New York City area operations in midtown Manhattan and just outside inWestchester County (Armonk), as well as a third operation in San Francisco.Hiscox USA (Hiscox Inc.) is a licensed insurance intermediary for surplus linesbusiness across the US underwriting on behalf of, and placing business with,Syndicate 33 at Lloyd's of London. For further information, visit www.hiscoxusa.com About American Live Stock Insurance Company Founded in 1952, American Live Stock Insurance Company is the premier live stockinsurer in the United States. Insurance is available in all 50 states, andinternationally in Australia and South Africa. Animal mortality insurance is itsprimary business. As a specialty lines carrier, American Live Stock alsoprovides farmowners cover in selected areas. The Company prides itself in beinginvolved in the industries it serves with special emphasis and support ofveterinary medicine and education. Through its affiliate agency, Harding & Harding, the Company can proudly traceits history back to its early offices in the Chicago Stock Yards and theinvolvement of the Company's founders, Frank Harding and Clint Tomson, in thecattle import/export trade. For further information, visit www.amlivestock.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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