Sompo International announced on 7 July a definitive agreement to acquire Service Insurance Companies, a US insurer that focuses exclusively on workers' compensation.
Why Sompo International Holdings Ltd. is buying Service Insurance Companies
Sompo said the deal broadens its underwriting presence in the small and medium-sized enterprise segment and the general agents market, combining Service's distribution platform and claims capabilities with its own US commercial business. Chris Sparro, Sompo's North America chief executive, said it establishes a top-tier flagship for its workers' compensation business.
“Together with Service Insurance Companies' seasoned leadership team and proven workers' compensation platform, Sompo is establishing a top-tier flagship for our workers' compensation business”
Deal terms and financing
Terms were not disclosed. Service Insurance president Brad Davis will continue to lead the business, which Sompo expects to extend from monoline workers' comp into a broader commercial insurer.
Regulatory approvals and timing
Completion is subject to regulatory approvals and other customary closing conditions.
Market context
Founded in 1982 and based in Austin, Texas, Service Insurance Companies writes only workers' compensation through Service Lloyds Insurance Company and Service American Indemnity Company, offering underwriting, claims management and loss control.
