Core Specialty is to form a medical stop-loss division through the acquisition of American National Group (ANAT)’s stop-loss business. Completion of the mandate is dependent on regulatory approvals and is expected to close in the fourth quarter of 2023.
Following the acquisition, the company will house 13 specialty business units.
Core Specialty has appointed Jim Stelling as the president of the newly-formed division. Stelling has more than 20 years’ experience in the industry.
Stelling joins the division from American National Insurance Company (ANICO), where he served as executive vice president, health insurance and specialty markets group operations.
During his tenure at ANICO, Stelling led the company’s health insurance operations and supported its stop-loss business.
The ANAT stop-loss business is distributed by managing general underwriters and cedes or retrocedes the majority of the premium and risk associated with the programmes underwritten. Stop-loss coverage is used by employers to limit their exposure under self-insured medical plans.
Jeff Consolino, Core Specialty’s founder, president and CEO, comments: “This [medical stop-loss] is a sizable and growing market, with over US $26 billion in total premium income which has grown at over a 12 per cent annual rate since 2014, according to AM Best market data.
“Medical stop-loss is an attractive class of business to us due to its specialty nature, the fact that it does not correlate with our other specialty classes of business, the ability to generate appropriate underwriting profits and the resultant attractive return on capital.”
