Munich Re Group: Munich Re America HealthCare and Cairnstone Solidify Relationship Through Purchase Agreement
2007/08/20
Group | Munich Health
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Munich Reinsurance America, Inc., through its operating division, Munich Re America HealthCare, has entered into a definitive merger agreement with Cairnstone, Inc. – an industry leader in employer stop loss insurance. The transaction is expected to close in September.
"We are very excited about our ownership of Cairnstone," said Bob Trainer, President of Munich Re America HealthCare. "We view this as an excellent strategic fit and are looking forward to significant growth opportunities. This demonstrates our commitment and desire to expand our leadership position in this market." "This acquisition fits perfectly with the Munich Re Group’s International Health strategy," said Dr. Wolfgang Strassl, Member of the Board of Management of the Munich Re.
"It further demonstrates our commitment to the U.S. healthcare market." With this transaction Munich Reinsurance America, Inc. increases its ownership in Cairnstone from 25% to 100%. Cairnstone will keep its name and continue to operate independently with its core management team in place.
"This is great news for Cairnstone," said President and CEO of Cairnstone, Jim Tillett. "We have built an incredible partnership with Munich Re America HealthCare over the past ten years that has resulted in consistent value, extraordinary service, and financial stability for our clients. We are excited about the many additional benefits that we will be able to bring to our clients as a result of this transaction."
Cairnstone, Inc. has been in the employer stop loss business since 1996 and manages over $80 million of employer stop loss business. Stop loss insurance helps self-insured employers manage the risk of funding their employees’ healthcare cost.
Münchener Rückversicherungs-Gesellschaft
signed Dr. Strassl signed Dr. Lawrence
Munich Re America HealthCare, one of the US-Nation’s largest providers of healthcare risk management solutions, is a division of Munich Reinsurance America, Inc., a member of the Munich Re Group. For more information about Munich Re America HealthCare, please visit www.mrahc.com.
About Cairnstone
Founded in 1996, Cairnstone manages employer stop-loss insurance programs in the United States of America and provides catastrophic claims management assistance to hundreds of self-funded employer groups nationwide. Cairnstone is also a leading producer of catastrophic medical coverage to hospital and physician groups. The company has agreements with several leading insurance carriers to market, underwrite and manage those excess loss programs. In addition to its headquarters in Miami, Cairnstone has offices in nine cities across the country. For more information about Cairnstone, please visit www.cairnstone.com.
The Munich Re Group operates worldwide, turning risk into value. In the financial year 2006, it achieved a profit of €3,519m, the highest in its 126-year corporate history. In 2006, its premium income amounted to approximately €37bn and its investments to around €177bn. The Group is characterised by particularly pronounced diversification, client focus and earnings stability. It has approximately 37,000 employees in over 50 locations throughout the world and operates in all lines of insurance. With premium income of around 22bn in the year 2006 from reinsurance alone, it is one of the world's leading reinsurers. Its primary insurance operations are mainly concentrated in the ERGO Insurance Group; it is the second-largest provider in the German primary insurance market and a leading player in the European insurance market in health insurance and legal expenses cover. The ERGO Insurance Group is present in 25 countries, and 33 million clients place their trust in the services, competence and security it provides.
This media information contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of Munich Re. The company assumes no liability to update these forward-looking statements or to make them conform to future events or developments.