Bermuda-based specialist insurer Hiscox Ltd. said today it is acquiring Altoha Inc. with subsidiaries American Live Stock Insurance Company and Harding & Harding Inc. insurance agency for $55 million.
American Live Stock was described by Hiscox as the premier live stock insurer in the United States.
Hiscox said it will use internal resources for the purchase and will acquire net tangible assets of $45 million. Closing is expected in July. Altoha is described as a privately held group owned by various individuals with subsidiaries based in Geneva, Ill., where the company has a staff of 23.
American Live Stock Insurance Company provides animal mortality coverage for cattle and horses. In 2006, it had gross written premium income of $16.9 million and a combined ratio of 80.9. As an affiliated agency, Harding & Harding Inc. places all of its business with American Live Stock Insurance Company.
Bronek Masojada, Hiscox chief executive, said: "Earlier in the year we said that in order to continue to develop our U.S. business we would acquire an admitted insurance carrier when the right opportunity arose. The acquisition of Altoha is an excellent fit on all fronts. It gives us a carrier admitted in 50 states through which we can expand our existing U.S. operations and product offering."
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