Service Insurance Holdings, a monoline workers’ comp carrier, announced Wednesday the acquisition of American Healthcare Indemnity Co., an Oklahoma-domiciled carrier that sells medical malpractice insurance.

J. Kelly Gray

The insurance group, which is the parent of Austin, Texas-based Service Lloyds Insurance Co., said the goal of the purchase is a gradual expansion of the company’s business geographically. The purchase will allow it to write workers’ compensation insurance in up to 48 states, the company said.

"The launch of Service American Indemnity Company, integrated with Service Lloyds, represents one of the first steps in our strategy to execute measured, organic growth into targeted areas over the next few years,” stated J. Kelly Gray, CEO of Service Insurance. "It will allow us to continue our tradition of unparalleled service in the workers compensation market as well as be responsive to the growing needs of customers and stakeholders."

National Association of Insurance Commissioners’ data shows that American Healthcare Indemnity is largely an insurer only on paper. The company had no direct written premiums in 2016 or 2017, but had $21 million in assets. 

The Oklahoma Department of Insurance online records indicate that American Healthcare is licensed to write only medical malpractice, commercial liability and professional liability coverage in the state where it is domiciled.