ABSTRACT
The origins of Heath International Holdings (HIH) may be traced back to 1968, when Ray Williams and Michael Payne formed an underwriting agency in Melbourne. As insurance brokers with Lloyd's of London, they specialized in workers' compensation. After 1995, the company embarked on a period of rapid growth achieved primarily through acquisitions, which in turn brought significant changes in the company's investment and business strategies. The first big acquisition was the CIC Insurance group for $154.2 million. HIH viewed FAI Insurance as a possible acquisition as a means to secure a major share of the Australian general insurance market. A decision was made in 1998 to acquire the Cotesworth Group Limited which was the managing agent of four active Lloyd's syndicates, three of which wrote marine insurance. Under the deal, HIH provided the collateral for one of the Cotesworth companies to borrow money to invest in one of the Lloyd's syndicates.
