HCC Insurance Holdings (HCC) - Get Report agreed to buy the assets of the health products division of Allianz Life Insurance of North America for $140 million.

The transaction should close by the end of the third quarter, HCC said. Allianz Life's health products division is an insurance operation located in Minneapolis.

"We are pleased to have reached an agreement with HCC,'' said Douglas P. Reynolds, president and chief operating officer of Allianz Life Insurance of North America. "This transaction will provide tremendous value for HCC and will give Allianz Life the opportunity to focus on our core businesses.''

HCC said that following the transaction, its HCC Life unit will write more than $750 million in annual premiums, covering more than 15 million lives for health insurance.

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