29, 1994--Sallie Mae, the nation's largest investor in insured education loans, announced today that it has signed an agreement to acquire HICA Holding Inc.
HICA Holding, located in Sioux Falls, South Dakota, protects against credit loss to lenders who make privately-sponsored postsecondary education loans.
Under the proposed transaction, Sallie Mae would acquire all of the capital stock of HICA Holding for an undisclosed, not material amount.
Sallie Mae currently owns about 75 percent of the approximately $800 million of loans HICA insures today, most of which have been made to students attending graduate and professional institutions.
Private education loans are made by banks and other lenders, typically with private insurance, such as that provided by HICA.
As one of the principal firms today engaged in the private insurance sector of the education credit market, HICA has expertise and broadbased school relationships in this segment of the market.