Tokio Marine Agrees To Acquire PURE Affiliated Group Of Specialty Companies
October 2, 2019
Tokio Marine Holdings, Inc. today announced it has reached a definitive agreement to acquire Privilege Underwriters, Inc. (PUI) from investors led by Stone Point Capital and KKR. PUI is the holding company for a collection of specialty companies serving the needs of high net worth individuals and families. PUI, which does business through the PURE Group of Insurance Companies (PURE Group), includes: PURE Risk Management, the attorney-in-fact for Privilege Underwriters Reciprocal Exchange (PURE); PURE Insurance Company, a Florida-domiciled stock insurance company; PURE Programs, a managing general underwriter; and Haven Art Group, a fine art services and claims management company. Each of the PURE Group companies, except the reciprocal insurance exchange, which is an unincorporated association owned by its subscribers, will become wholly owned subsidiaries of HCC Insurance Holdings, Inc.
The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the first quarter of 2020. Ross Buchmueller, President & Chief Executive Officer and founder of the PURE Group, will continue to lead the organization as an independent operating unit within the Tokio Marine Group.
The PURE Group is one of the leading writers of high net worth insurance in the United States. The company has grown organically by more than 20% in each of the past twelve years and has inforce premiums of more than $1 billion. The PURE Group creates specialized insurance solutions and offers coverages including: Homeowners; Automobile; Personal Excess Liability; Jewelry, Art & Collections; Fraud and Cyber Fraud; Watercraft; and Flood. The company is headquartered in White Plains, New York with ten offices across the United States. The PURE Group employs approximately 800 people writing business in 49 states and the District of Columbia.
“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,” said Chris Williams, Senior Managing Executive Officer and Co-Head of International Business for Tokio Marine Holdings, Inc.