Tokio Marine Pays $7.5 Billion For HCC in Its Biggest Deal

Tokio Marine Holdings Inc. agreed to buy HCC Insurance Holdings Inc. for about $7.5 billion in the biggest acquisition by a Japanese insurer, stepping up an overseas expansion to counter stagnation at home.

Tokio Marine will pay $78 in cash per share for Houston, Texas-based HCC, according to a statement June 10. That’s a 37.6 percent premium to the latest closing price.

Japanese insurers are looking for ways to spread risks and increase revenues overseas as an aging population saps demand for policies and natural disasters lead to higher payouts. To that end, they’ve announced $27.5 billion of acquisitions abroad ...