Tokio Marine to acquire PURE Group for $3.1bn

Tokio Marine acquisition of PURE Group : Japanese insurance holding company Tokio Marine will acquire Privilege Underwriters (PUI), which does business through the US insurance group – Pure Group of Insurance Companies (PURE Group) for $3.1 billion.

The US insurance group is being acquired from investors led by KKR and Stone Point Capital, as per the latest insurance acquisition news.

Privilege Underwriters is the holding company for various specialty companies catering to the needs of high net worth individuals and families.

The PURE Group is made up of PURE Risk Management, the attorney-in-fact for Privilege Underwriters Reciprocal  Exchange (PURE), Florida-based Pure Insurance Company, managing general underwriter PURE Programs and Haven Art Group, which is a fine art services and claims management firm.

All the PURE Group companies with the exception of the reciprocal insurance exchange, which is an unincorporated association owned by its subscribers, will become fully-owned subsidiaries of HCC Insurance, a subsidiary of Tokio Marine.

The PURE Group is regarded as one of the top writers of high net worth insurance in the US.  The insurance company makes specialized insurance solutions and provides various coverages.

Commenting on Tokio Marine acquisition of PURE Group, Chris Williams – Senior Managing Executive Officer and Co-Head of International Business for Tokio Marine, said: “The PURE Group’s member-owned model is unique and forges an alignment of interests focused on delivering a sophisticated insurance solution to carefully selected individuals.

“This acquisition provides unique growth opportunities and portfolio diversification for the Tokio Marine Group.  We look forward to welcoming the PURE Group’s management team and employees to Tokio Marine and to helping them continue to grow this business post-transaction.”

Headquartered in White Plains, New York, the PURE Group has ten offices in the US.  It employs nearly 800 people writing business across 49 states and the District of Columbia.

Ross Buchmueller – President & CEO and founder of the PURE Group, commenting on Tokio Marine acquisition of PURE Group, said: “Tokio Marine has a great track record of acquiring wonderful franchises and making them even better.

“We share a common view of culture and purpose and long-term perspective.  The opportunity to continue our mission unabated with the backing of one of the world’s largest insurers makes this a great marriage.”

For the Tokio Marine Group, Morgan Stanley is the financial advisor, while Sullivan & Cromwell is legal advisor, and KPMG LLP is accounting/tax advisor. For the PURE Group, Skadden, Arps, Slate, Meagher & Flom is the legal advisor.

Tokio Marine acquisition of PURE Group, which would need regulatory approvals and meet other customary closing conditions, is expected to be wrapped up in Q1 2020.

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