AIG is acquiring Ellipse, a specialist provider of group life risk protection in the UK, from Munich Re. The terms of the deal were not disclosed but the operation will be fully funded with cash.
Launched in 2009, Ellipse is the sixth largest UK group life provider. As of May 2018, the company repoted approximately £64 million of in-force premiums and nearly 4,500 in-force policies covering over 370,000 lives.
The transaction, the terms of which were not disclosed, will be fully funded with cash. The acquisition is expected to close in the first quarter of 2019, subject to required regulatory approval
Ellipse’s group protection capabilities, which include life, critical illness and income protection products, along with its technology-enabled business model with high levels of straight through processing, will position AIG to efficiently manage group risk schemes for companies of all sizes, companies said in a joint statement.
Kevin Hogan, AIG Life & Retirement’s chief executive, 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. We look forward to welcoming the Ellipse team to AIG.”
Lee Lovett, chief executive of Ellipse, added: “I would like to thank Munich Re for supporting the development and growth of Ellipse over the last 9 years, such that we are now recognized as a mainstream group risk insurer. We now look forward to the next exciting chapter of our growth story with our new owner, AIG Life.”
Munich Re was advised by Fenchurch Advisory Partners.