On Wednesday, American International Group and Munich Re announced today that AIG Life Ltd. (AIGLL), a UK subsidiary of AIG Life & Retirement, agreed to acquire Ellipse, a specialist provider of group life risk protection in the UK, from Munich Re.
Terms of the deal were not disclosed, although the announcement said the transaction will be fully funded with cash.
The acquisition is expected to close in the first quarter of 2019, subject to required regulatory approval.
In a media statement, Kevin Hogan, Executive Vice President and Chief Executive Officer, AIG Life & Retirement, 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.”
Ellipse’s group protection capabilities include life, critical illness and income protection products, along with a technology-enabled business model with high levels of straight-through processing. AIG said the technology will position AIGLL to efficiently manage group risk schemes for companies of all sizes.
Since its launch in 2009, Ellipse has grown to become the sixth largest UK group life provider based on 2017 new business volumes.
Sources: American International Group; Munich Re