Great-West Life & Annuity Insurance Company Announces Agreement to Acquire the Group Health and Related Products Division of General American Life
The Division to be acquired provides a carefully selected array of health products. It is one of the largest U.S. insurance operations focused exclusively on offering administrative services only, specific and aggregate medical stop-loss and related life, accidental death and dismemberment, dental, and short and long term disability products to medium and large-sized employers.
The business being acquired currently covers in excess of 1 million members for healthcare, and with the related non-medical coverages, represents $1.9 billion of premium and premium equivalents. This compares to Great- West's current membership, inclusive of recently acquired business, of 2.5 million medical members, and premium and premium equivalents in excess of $5.0 billion.
The Division will operate as a St. Louis based separate unit of Great-West under its own identity as GenAm Benefits. There will be continuity of GenAm services, products, systems, and processes. The business will continue to be sold and administered from current GenAm locations.
Bill McCallum, president and CEO of Great-West said, "We have a track record of acquiring organizations and businesses that match our strategies. These acquisitions augment our internal growth, not only with the one time business addition but more importantly with the addition of the sales and support organization which has the expertise to retain and grow the business. This particular acquisition builds on what we now do, albeit to a slightly larger segment of the employee benefits market."
Jim Motz, executive vice president of Great-West's employee benefits division noted, "The addition of the GenAm people and business will provide strategic growth for us in the medium and large-size employer segment and provides a strong platform for future growth." "In addition", Motz said, "the GenAm acquisition will provide us the opportunity to add many more members to our healthcare programs offered through our subsidiary, One Health Plan. GenAm will have access to the full array of healthcare services provided through One Health Plan, from PPO networks to self-funded HMO and point of service programs."
Warren Winer, the executive in charge of the GenAm Benefits Division, offered these comments. "The nearly 1600 associates of our group are excited to become a part of one of the leading A++ rated, life and healthcare companies in the country. Their commitment to allow us to continue operating as a separate business unit dedicated to building our large case, multi-site employer business, including progressive enhancement of our strong technology platform, should be welcome news to our customers, our distributors, and our associates. Our clients and their employees will experience uninterrupted, high quality service from the people with whom they are currently working, and will now have options to consider new products and services that may further enhance their benefit programs."
In addition to its leadership position in the employee benefits market, Great-West is a leader in the defined contribution retirement services market with an emphasis on public and non-profit groups. The company provides services to over 3.6 million customers and has assets in excess of $25 billion.
Great-West Life & Annuity is rated A++ by A.M. Best, Aa2 by Moody's Investors Service, AA+ by Standard & Poor's Corporation, and AAA by Duff & Phelps. These ratings reflect the financial strength of the company and of its businesses.
Great-West Life & Annuity Insurance Company is an indirect subsidiary of Great-West Lifeco Inc., a member of the Power Financial Corporation group of companies. Great-West Lifeco Inc. is a financial services holding company with interests in the life insurance, health insurance, retirement savings, reinsurance and general insurance businesses, primarily in Canada and the United States. Its subsidiary, the Great-West Life Assurance Company, serves the financial security needs of more than 13 million people through Great-West Life & Annuity Insurance Company in the United States and through its Canadian operations and London Insurance Group in Canada.
SOURCE Great-West Life & Annuity Insurance Company
/CONTACT: Kathy Jacoby, Public Relations of Great-West, 303-737-3155