Munich Re to sell Windsor Health Group to WellCare Health Plans, Inc.
Munich Re announced today that it has reached an agreement to sell Windsor Health Group (WHG) to the US health insurer WellCare Health Plans, Inc. Both sides have agreed to maintain confidentiality regarding the purchase price. The transaction is expected to be closed in the 4th quarter of 2013, subject to regulatory approvals.
The transaction announced today is the result of a review of Munich Re's primary health insurance strategy in the US. It is also part of Munich Re’s efforts to increase its health segment’s focus in North America on business with corporate clients. The sale will not have a material impact on Munich Re’s expected result for 2013. The business segment Munich Health now expects to achieve a small profit, as usual subject to the further business development as well as capital market and currency movements. In 2012, Munich Health posted a negative consolidated result of –€92m, attributable to losses in the US Medicare business written by WHG. That aside, Munich Health’s business has been developing positively.
WellCare Health Plans, Inc. provides managed care services targeted to government-sponsored health care programmes, focusing on Medicaid and Medicare. Headquartered in Tampa, Florida, USA, WellCare offers a variety of health plans for families, children, and the aged, blind, and disabled, as well as prescription drug plans. The company serves approximately 2.8 million members nationwide as of June 30, 2013.
Munich Re bought the US Medicare provider Windsor Health Group Inc. for €101m in 2011. In 2008, Munich Re had acquired Sterling Life Insurance Company for €223m. Since 2011, Windsor and Sterling have been operating under the roof of the WHG, serving more than 300,000 members in the USA.
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