Japanese insurer Tokio Marine Holdings Inc. has agreed to buy Houston, Texas-based HCC Insurance Holdings Inc. for US$7.5 billion, the Wall Street Journal reported.
Tokio Marine said the acquisition would increase the percentage of profits it earned overseas to 46 percent of the total from 38 percent.
HCC provides medical stop-loss insurance and short-term medical coverage in the United States, as well as international coverage in 130 countries. The U.S. insurer also has operations in Britain and Spain.
Tokio Marine, Japan’s largest non-life insurer by market value, has been looking abroad for growth. In 2012 it bought Delphi Financial Group Inc. for US$2.66 billion. It acquired Philadelphia Consolidated Holding Co. for US$4.7 billion in 2008.
Despite the decline in the value of the yen, Japanese companies have been busy snapping up overseas companies.
They have announced a year-to-date record of US$50.1 billion of overseas acquisitions so far this year, up from US$30.1 billion in the same period in 2014, the newspaper said, citing data from Dealogic. The total for all of last yearwas US$53.4 billion.
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