TORONTO--(BUSINESS WIRE)--Munich Re, through its subsidiary, Munich Re New Ventures, Inc, (MRNV) today announces that it has entered into an agreement to acquire Group Health Group Holdings, Inc. (GroupHEALTH), one of the largest third party group insurance administrators in Canada. GroupHEALTH delivers ground-breaking plan designs and administration solutions to Canadian businesses.
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).
The acquisition holds special promise for Munich Re group life clients who are looking for transformational growth enablers. “At the core of this acquisition is GroupHEALTH’s agile approach to addressing insurer growth and profitability,” says 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.”
Four years ago, Munich Re established MRNV to identify competencies that would address the industry’s legacy system inefficiencies. Since then, MRNV has become an incubator of leading edge technology, distribution and product offerings for Munich Re’s clients and partners.
With the establishment of MRNV, Munich Re identified two significant paths: 1) through the development of a comprehensive direct to consumer platform, ultimately named Parachute Digital Solutions brought to market in 2017, and 2) a strategic investment in the group insurance distribution and administration network, specifically, in a third party administrator that could offer modern, flexible and scalable technology that could bring continuous innovation and value to clients.
“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.”
GroupHEALTH will continue to be led by Matt Houghton, GroupHEALTH’s CEO and his executive team. 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.
About Group Health
As leaders in employee benefits plans and group insurance, the GroupHEALTH Family of Companies has more than 700 employees in offices in Vancouver, Surrey, Calgary, Edmonton, Etobicoke, Woodbridge and Barrie.
With annual premiums in excess of $650 million and $5 billion in pension assets under management, GroupHEALTH insures more than 5,000 client organizations across Canada, in both the public and private sectors, supporting more than 450,000 Canadians and their families.
GroupHEALTH Benefit Solutions® (www.Grouphealth.ca) has acquired or holds substantial controlling interest in several exceptional Canadian companies including Disability Management Institute, GroupSource LP, and Manion Wilkins & Associates Ltd.
About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG.
Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through to the 2019 Pacific typhoon season.
Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, or cyberattacks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.