Tokio Marine Holdings is reportedly acquiring a US-based insurer operating in the employee benefits space, in a deal that could be worth US$184 million (SG$245.25 million).
The Japanese insurance giant is set to acquire Standard Security Life Insurance Co. of New York after the parties have reached a basic agreement on the deal, according to a report by Nikkei. This will give Tokio Marine access to the American SME employee benefits market.
Reliance Standard Life Insurance, a subsidiary of Tokio Marine-owned Delphi Financial Group, will act as the buyer in the transaction. Standard Security provides employee benefits products such as insurance for paid family leave and disability benefits coverage.
The move will also grow Tokio Marine’s footprint in the US, amid several overseas acquisitions that aim to spread the insurer’s risk profile amid a stagnating insurance market in Japan.
In January, Tokio Marine’s US unit Philadelphia Insurance Companies acquired the staffing insurance business of World Wide Specialty Programs. Another major overseas acquisition on June 2020 saw Tokio Marine buy GCube, a British insurer catering to the renewable energy industry, through its Tokio Marine HCC arm.