Core Specialty Uses Acquisition To Form Medical Stop-Loss Division

Core Specialty Insurance Holdings, Inc., and its subsidiaries announced that it will form a medical stop-loss division through the acquisition of the managing general underwriter (MGU)/stop-loss business of American National Group (ANAT).

Jim Stelling will join Core Specialty as president of the newly formed medical stop-loss division. Most recently, Mr. Stelling was executive vice president of health insurance and specialty markets group operations at American National Insurance Company (ANICO). He brings more than 20 years of experience in the industry to his new position.

In addition, during his time at ANICO, Mr. Stelling led health insurance operations and supported the stop-loss business serving as the senior vice president of health insurance operations and as the vice president of group and health compliance.

Core Specialty said the business is being acquired for cash through the acquisition of 100 percent of the stock of Standard Life and Accident Insurance Company and certain reinsurance transactions. The transaction's completion is conditional upon obtaining required regulatory approvals and is expected to close in the fourth quarter of this year.

The medical stop-loss division will maintain its presence in League City, Texas, after the closing.

The ANAT MGU/stop-loss business produced more than $300 million of gross premium income in 2022, a Core Specialty statement said. The business is distributed by MGUs and cedes or retrocedes the majority of the premium and risk associated with the programs underwritten.

"We are delighted that Medical Stop-Loss will become our 13th Specialty Business Unit. This is a sizable and growing market, with over $26 billion in total premium income which has grown at over a 12 percent annual rate since 2014 according to A.M. Best market data," Jeff Consolino, Core Specialty's founder, president, and CEO, said in the statement. "We look forward to working with Jim Stelling and his team, their specialized managing general underwriters, and their existing reinsurance panel."