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
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.
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SOURCE HM Insurance Group