Bermuda-based specialist insurer Hiscox Ltd. said today it isacquiring Altoha Inc. with subsidiaries American Live StockInsurance Company and Harding & Harding Inc. insurance agencyfor $55 million.

American Live Stock was described by Hiscox as the premier livestock insurer in the United States.

Hiscox said it will use internal resources for the purchase andwill acquire net tangible assets of $45 million. Closing isexpected in July. Altoha is described as a privately held groupowned by various individuals with subsidiaries based in Geneva,Ill., where the company has a staff of 23.

American Live Stock Insurance Company provides animal mortalitycoverage for cattle and horses. In 2006, it had gross writtenpremium income of $16.9 million and a combined ratio of 80.9. As anaffiliated agency, Harding & Harding Inc. places all of itsbusiness with American Live Stock Insurance Company.

Bronek Masojada, Hiscox chief executive, said: "Earlier in theyear we said that in order to continue to develop our U.S. businesswe would acquire an admitted insurance carrier when the rightopportunity arose. The acquisition of Altoha is an excellent fit onall fronts. It gives us a carrier admitted in 50 states throughwhich we can expand our existing U.S. operations and productoffering."