Munich Re, via its subsidiary Munich Re New Ventures (MRNV), has announced plans to acquire Group Health Group Holdings, Inc. (GroupHEALTH), one of the largest third party group insurance administrators in Canada.
MRNV will increase its stake in GroupHEALTH from its existing 40% interest to owning 100% of the company.
Following the closing of the transaction, MRNV will own 100% of GroupHEALTH. MRNV previously held a 40% interest in the company. The transaction is subject to receipt of regulatory approval under the Competition Act (Canada).
“At the core of this acquisition is GroupHEALTH’s agile approach to addressing insurer growth and profitability,” explained Marc Costantini, President & CEO, Corporate Development, Strategy & Digital Solutions, Munich Re North America Life and Health.
“GroupHEALTH’s state-of-the-art sales and administration capabilities provide insurers efficient access to new markets, with an advanced customer interface.”
“Munich Re’s planned acquisition of GroupHEALTH is in line with our innovation strategy,” says Richard Letarte, President & CEO, 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.”
Following the acquisition, GroupHEALTH will continue to be led by Matt Houghton, GroupHEALTH’s CEO and his executive team.
Munich Re says there are no changes expected to GroupHEALTH’s operating model, personnel, service model or standards.
“MRNV has been a great partner in assisting insurers to deliver innovative products and services to meet our clients evolving needs to date,” said Matt Houghton, CEO GroupHEALTH Family of Companies. “We could not be more excited about this next chapter working together to further enhance the value proposition for all stakeholders.”
“We are very pleased to continue to partner with Matt and his exceptional team. GroupHEALTH has an impressive, relentless commitment to innovation, coupled with continued, annualized profitable growth,” says Letarte.