The insurance holding company that owns Lancer Insurance Company is growing.
Core Specialty Insurance Holdings Inc. and its subsidiaries will form a Medical Stop-Loss Division through the acquisition of the MGU/Stop-Loss business of American National Group, the company announced.
The acquisition will mark Core Specialty’s 13th Specialty Business Unit. Jim Stelling will join Core Specialty as the President of the newly formed Medical Stop-Loss Division.
Stelling most recently was the Executive Vice President of Health Insurance and Specialty Markets Group Operations at American National Insurance Company and has more than 20 years of experience in the industry. During his tenure at American National, Stelling led health insurance operations and supported the stop-loss business, serving as Senior Vice President of Health Insurance Operations and as Vice President of Group and Health Compliance.
The business is being acquired for cash through the acquisition of 100% of the stock of Standard Life and Accident Insurance Company and certain reinsurance transactions.
The transaction is expected to close in the fourth quarter of 2023. The Medical Stop-Loss Division will remain in League City, Texas. Core Specialty expects the transaction to increase its earnings per share and return on equity in 2024.
Supports self-insurance plans
The ANAT MGU/Stop-Loss business produced over $300 million of gross premium income in 2022. The business is distributed by Managing General Underwriters.
Stop-loss coverage is used by employers to limit their exposure under self-insured medical plans. Specific stop-loss provides coverage when claims for an individual reach a threshold; aggregate stop-loss reimburses the employer once the group’s total paid claims reach a threshold.
“We are delighted that Medical Stop-Loss will become our 13th Specialty Business Unit,” said Jeff Consolino, Core Specialty’s founder, President and Chief Executive Officer. “Medical Stop-Loss is an attractive class of business to us due to its specialty nature, the fact that it does not correlate with our other specialty classes of business, the ability to generate appropriate underwriting profits and the resultant attractive return on capital.”
Core Specialty offers a diversified range of property and casualty insurance products for small to midsized businesses across the nation. In 2021, Core Specialty completed its merger with Lancer Insurance Company, which specializes in businesses and commercial transportation.
