AIG buys UK life insurance business from Munich Re
US insurance giant American International Group (AIG) has agreed to acquire a specialist life risk protection business from reinsurer Munich Re in the UK.
The business, Ellipse, is a specialist provider of group life risk protection in the UK.
Group life risk is a product aimed at companies which can insure benefits due to staff such as liability for long-term sick pay, death benefits and critical illness benefits.
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Ellipse launched in 2009 and has since grown to become the UKs sixth largest group life provider based on 2017 new business volumes.
It has reached an eight per cent share of new business premiums and a four per cent share of in-force premiums in 2017.
As of May 2018 Ellipse holds around £64m of in-force premiums and nearly 4,500 in-force policies covering over 370,000 lives.
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The terms of the transaction have not been disclosed, but AIG said the deal would be fully funded with cash.
It is expected to close in the first quarter of 2019, subject to regulatory approval.
Chief executive of AIG life and retirement Kevin Hogan said: “The acquisition of Ellipse reflects our disciplined approach to selectively expanding our existing Life & Retirement businesses while pursuing opportunistic growth. Ellipse brings a strong team with a scalable business platform to our well-positioned, technology-driven UK life business."
Munich Re was advised by Fenchurch Advisory Partners.
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