HM Insurance Group Announces Agreement to Acquire Risk Based Solutions

Oct 16, 2006, 01:00 ET from HM Insurance Group

    PITTSBURGH, Oct. 16 /PRNewswire/ -- HM Insurance Group, a Highmark Inc.
 company, announced today that an agreement has been reached by its
 subsidiary HM Life Insurance Company to acquire Risk Based Solutions (RBS
 Re) for an undisclosed amount of cash. RBS Re is one of the leading
 managers and underwriters of HMO reinsurance in the United States.
     "This acquisition will better position HM Insurance Group as a leader
 in the Excess Loss market. It complements our current strong position in
 Employer Stop Loss with the addition of equally strong HMO reinsurance
 capabilities," said Daniel Lebish, president and chief executive officer of
 HM Insurance Group. "The RBS Re acquisition strengthens our ability to
 return value and enhance our competitive position as a health risk
 solutions carrier for employers and providers."
     "We are excited about being part of an organization with the
 experience, knowledge and resources of HM Insurance Group," said Alexander
 Soria, president of RBS Re. "RBS Re can now offer a range of products and
 services to help meet the changing needs of our customers in the managed
 care market."
     HM Life Insurance Company has agreed to acquire 100 percent of the
 ownership interests in RBS Re. For the 2006 underwriting year, RBS Re is
 managing a $33 million block of HMO Reinsurance and Stop Loss premiums.
     HM Insurance Group will retain RBS Re staff and resources as a wholly
 owned subsidiary of HM Life Insurance Company. As such, the new subsidiary
 will maintain its name, distribution channel, operations and locations.
     No further details of the transaction are being released. The
 transaction is expected to close shortly.
     Pittsburgh, Pa.-based HM Insurance Group provides group health-related
 insurance products nationally to protect businesses and their employees
 from potential financial losses associated with health care costs. HM
 Insurance Group's connected portfolio of products and services helps to
 provide health risk solutions for clients. In addition to Stop Loss
 coverage to protect against catastrophic claims, HM Insurance Group offers
 Worksite and Limited Benefit Medical group insurance and has regional sales
 offices in 19 locations.
     HM Life Insurance Company and HM Life Insurance Company of New York
 have received an "A-"(Excellent) rating from A.M. Best Company, one of the
 country's oldest and most respected rating agencies. HM Insurance Group
 consists of HM Life Insurance Company, HM Life Insurance Company of New
 York and HM Benefits Administrators. Not all products or services are
 available in all states.
     RBS Re is an integrated reinsurance management company specializing in
 the direct distribution, underwriting and administration of Stop Loss and
 Reinsurance products to managed care and self-funded employers. Miami,
 Fla.- based RBS Re serves accounts nationally with offices in Boston,
 Nashville, Denver and Minneapolis.
     For more information about HM Insurance Group, log onto

SOURCE HM Insurance Group