PITTSBURGH, June 17 /PRNewswire/ -- In a move that will place HM Insurance Group among the largest employer stop loss carriers in the U.S., it was announced today that HM Life Insurance Company has reached an agreement with Mutual of Omaha to acquire its employer stop loss line of business for an undisclosed amount.
"This acquisition will strengthen HM's leadership position in the stop loss market," said Michael W. Sullivan, President and COO of HM Insurance Group, a Highmark Company. "The block complements our current stop loss distribution channel, allows us to achieve greater economies of scale and supports our strategic direction as an expert in health risk solutions."
"We believe this is a win-win transaction for Mutual of Omaha, our stop loss clients and HM Insurance Group," said Dan Martin, Mutual's Executive Vice President of Group Benefit Services. "It allows Mutual of Omaha to concentrate on continued growth in our core products while giving our clients access to an industry leader in stop loss."
The transaction, effective July 1, 2010, following regulatory approvals, is consistent with Mutual of
Omaha's strategic decision to move away from traditional health insurance and focus on its core products. Sullivan reported that the Mutual of Omaha stop loss block, with approximately $100 million in annual premium, will grow HM's current block of $420 million by nearly 25 percent. "HM is pleased to acquire this line of business. It has performed well and Mutual of Omaha has an outstanding reputation in the marketplace," Sullivan said. To capitalize on the success Mutual has built with stop loss and ensure business continuity, HM will maintain a regional stop loss office in Omaha, NE.
Stop loss insurance is designed to protect employers' self-funded health plans from the financial impact of catastrophic claims.
HM Insurance Group is a recognized leader in stop loss and reinsurance, offering employer stop loss, provider excess and HMO reinsurance. HM's product portfolio also features voluntary worksite critical illness, accident, disability income and term life insurance as well as limited benefit medical plans.
HM Life Insurance Company and HM Life Insurance Company of New York have an "A-" (Excellent) rating from A.M. Best Company. Through its insurance companies, HM Insurance Group holds insurance licenses in 50 states and the District of Columbia and maintains 25 regional sales offices across the country. For more information about HM Insurance Group, visit www.hminsurancegroup.com.
Mutual of Omaha is a full-service, multi-line organization providing insurance, banking and financial products for individuals, businesses and groups throughout the United States. For more information about Mutual of Omaha, visit www.mutualofomaha.com.
SOURCE HM Insurance Group