Intact Insurance Group USA has agreed to buy Tokio Marine Highland’s (TMH) US construction division, Highland Insurance Solutions, from Tokio Marine Kiln (TMK).
Financial terms of the transaction were not shared.
Naperville, Illinois-based Highland will serve as a standalone managing general agent upon deal completion in the second half of this year.
It will cater to its clients and broker partners via its existing select markets, and through Intact.
For the deal, Morgan, Lewis & Bockius was the legal counsel to TMK and TMH while Waller Helms Advisors offered financial advice.
TMH specialises in offering primary as well as excess builders risk insurance in the US.
It has a staff strength of around 40, headed by president Rick Girden and EVP Kaileigh Bowe. These employees will be retained.
TMK CEO Brad Irick commented: “TMH remains core to TMK, and we are excited about the profitable growth opportunities of its existing business that includes flood, lender-placed insurance and fine arts.”
The deal is pending regulatory nod.
Intact Global Specialty Lines CEO T. Michael Miller said: “The acquisition of Highland is well aligned with our global specialty lines strategy and supports our growth, distribution and outperformance objectives,” said
“Highland has established itself in providing specialised insurance and adds a complementary offering to the more than 20 specialty lines available to our brokers and customers.”
Intact Insurance Specialty Solutions is the marketing brand for the insurance subsidiaries of Intact, which is a unit of Intact Financial Corporation.
Last month, Tryg and Intact Financial Corporation concluded the sale of Codan Forsikring’s Danish arm, Codan DK, to Alm. Brand.