Munich Re acquires third party administrator GroupHEALTH
Munich Re, through its subsidiary Munich Re New Ventures (MRNV), is set to acquire Group Health Group Holdings(GroupHEALTH), a third party group insurance administrator in Canada.
GroupHEALTH offers plan designs and administration solutions to Canadian businesses, in both the public and private sectors. The company has annual premiums in excess of $650 million and $5 billion in pension assets under management.
MRNV previously held a 40 percent interest in the company. Following the closing of the transaction, subject to receipt of regulatory approval under the Competition Act (Canada), MRNV will own 100 percent of GroupHEALTH.
Munich Re said its strategic investment in the third party administrator aims to bring modern, flexible and scalable technology to life clients who are looking for transformational growth enablers.
“Munich Re’s planned acquisition of GroupHEALTH is in line with our innovation strategy,” said Richard Letarte, president and chief executive of Munich Re New Ventures. “Our strategy is to build a structure that allows us to easily and quickly bring new ideas and products to market that will help our clients improve market reach, customer experiences and operations.”
Marc Costantini, president and chief executive, corporate development, strategy & digital solutions at Munich Re North America Life and Health, added: “At the core of this acquisition is GroupHEALTH’s agile approach to addressing insurer growth and profitability. GroupHEALTH’s state-of-the-art sales and administration capabilities provide insurers efficient access to new markets, with an advanced customer interface.”
Matt Houghton, chief executive of GroupHEALTH, commented: “MRNV has been a great partner in assisting insurers to deliver innovative products and services to meet our clients evolving needs to date. We could not be more excited about this next chapter working together to further enhance the value proposition for all stakeholders.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
