J.C. Flowers & Co LLC will take a controlling stake in New York City-based ELMC, a manager of full-service managing general underwriters. Also, ELMC has agreed to acquire East Norriton, Pennsylvania-based IOA Re Inc, a managing general underwriter. No financial terms were disclosed for either transaction.
New York, NY (September 22, 2016) – ELMC Group, LLC, (“ELMC”), a manager of premier, full-service managing general underwriters (“MGUs”) specializing in underwriting medical stop-loss insurance, announced today that it has signed an agreement to purchase IOA Re, Inc. (“IOA Re”), a longstanding, highly-reputable MGU headquartered in East Norriton, PA.
In connection with the acquisition of IOA Re, J.C. Flowers & Co. LLC (“J.C. Flowers”), a leading private investment firm dedicated to investing globally in the financial services industry, will acquire a controlling interest in ELMC.
“The acquisition of IOA Re will allow ELMC to expand its reach in the self-funded healthcare market and offer new opportunities for growth,” said Richard Fleder, co-founder and CEO of ELMC. “The addition embodies our commitment to providing a best-in-class platform for delivering smart, straightforward medical stop-loss solutions to our carrier, broker, TPA and client partners,” said Fleder.
“We are pleased to combine our strengths to meet the demands of the rapidly-changing marketplace,” said John Parker, president of IOA Re. “The ELMC platform enables us to reach a larger audience as well as strengthen our risk positions and capture profits through its offshore captive strategy,” Parker said.
Eric Rahe, a Managing Director of J.C. Flowers, added, “We believe this is an ideal time to invest in the medical stop-loss insurance sector, as more businesses are choosing to self-insure. Not only is this a sector we know well, but by partnering with the highly respected ELMC and IOA Re teams, we feel confident we can further enhance the company’s standing in the industry.”
IOA Re entered the medical stop-loss business in 1982 and remains a well-regarded organization. Beyond its key medical stop-loss product, IOA Re’s lines of business include managed care (HMO and provider excess insurance), and workers’ compensation catastrophe reinsurance; all lines of business which ELMC remains firmly committed to supporting.
IOA Re’s affiliated holding, Insurance Resources and Auditing Services (“IRAS”), provides professional auditing and insurance services for external MGUs, insurers, reinsurers, managed care organizations, third-party administrators (“TPAs”) and self-insured employers.
The acquisition of IOA Re represents a strong complement to ELMC’s existing operations, including Midwest Reinsurance Underwriters, RxReins and DiversitySL. The breadth and depth of IOA Re’s underwriting and operating platform provides an ideal springboard which will enable the organization to expand its reach in the self-funded healthcare market as well as the reinsurance space as a whole.
ELMC owns, manages and seeks to acquire premier MGUs across the nation that specialize in underwriting medical stop-loss insurance for self-funded health plans. ELMC provides a best-in-class platform for delivering medical stop-loss solutions to brokers, carriers and clients. For more information, visit elmcgroup.com.
About J.C. Flowers
J.C. Flowers is a leading private investment firm dedicated to investing globally in the financial services industry. Founded in 1998, the firm has invested more than $15 billion of capital in 45 portfolio companies in 16 countries across a range of industry subsectors including banking, insurance and reinsurance, securities firms, specialty finance, and services and asset management. With approximately $6 billion of assets under management, J.C. Flowers has offices in New York and London. For more information, visit jcfco.com.
About IOA Re
IOA Re is a managing general underwriter based in East Norriton, PA, with offices located throughout the United States. While medical stop-loss is IOA Re’s largest product line, IOA Re enjoys a strong reputation and client following in managed care, special risk, workers’ compensation and other associated lines of business. Its affiliated holding, IRAS, provides professional auditing and insurance services for external MGUs, insurers, reinsurers, managed care organizations, TPAs and self-insured employers.