HDI has acquired Indiana Lumbermens Insurance Company (ILIC) to bolster its presence in the US market.
The companies did not disclose the financial value of the transaction, which closed last week.
ILIC, a former subsidiary of Pennsylvania Lumbermens Mutual Insurance Company, is widely licensed and has a Treasury listing (T-listing), HDI noted.
With an initial emphasis on surety, HDI’s acquisition of ILIC is part of efforts to enhance and expand its portfolio of business solutions.
German insurance company HDI Global operates in the US through its subsidiaries HDI, a commercial property and casualty insurer, and HDI Global Specialty, a surplus lines insurer.
Following ILIC’s acquisition, HDI now has two admitted carriers and one non-admitted insurance carrier in the US.
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HDI Global Specialty CEO Ralph Beutter expects ILIC’s licences to enable the company to organically expand its portfolio of speciality lines insurance offerings.
HDI Global Insurance Company CEO Jim Clark added: “Acquiring the licences and T-listing from ILIC enables a quicker time to market than expanding our existing authorities. With this acquisition, we are in the position to enter the surety market in the US and seize further opportunities for profitable growth.”
Pennsylvania Lumbermens Mutual Insurance Company president and CEO John Smith said: “The sale of Indiana Lumbermens Insurance Company allows us to strengthen our operating position and continue to focus on service offerings to the lumber businesses across the country as the oldest and largest carrier in the niche.”
In October this year, HDI Global secured regulatory approval to open a new branch on the Iberian Peninsula.
HDI Global will provide insurance for property damage and business interruption, casualty, energy and construction, marine, cyber and speciality lines through its new office in Portugal.
In September, HDI Global Specialty teamed up with active insurance provider Coalition to strengthen its presence in the Canadian cyber insurance industry.