The FINANCIAL — According to Dow Jones, Germany's Munich Re Group AG (MUV2.XE) on December 17 said it has concluded an agreement with Aon Corp. (AOC) to acquire 100% of Sterling Life Insurance Company via subsidiary Munich-American Holding Corporation.
The purchase price of $352 million, or EUR243 million will be paid out through Munich Re's own funds. The transaction is expected to be completed in the first quarter of 2008, subject to required regulatory approvals and customary closing conditions.
With this acquisition, Munich Re remains fully committed to its existing capital management program.
Sterling Life Insurance Company, with an estimated total revenue of $805 million in 2007 and 155,000 members, is a leading provider of healthcare benefits to the senior and mature U.S. citizens, with a strong presence in the growing Medicare Advantage market. Its product portfolio also includes Medicare supplement and complementary products for seniors. The senior market is the fastest-growing segment of the U.S. healthcare industry.
"Sterling gives us an important platform with an excellent reputation to gain access to the fast-growing senior markets in the U.S., and to leverage our existing business", said Peter Choueiri, member of the International Health Board of Munich Re.
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