Munich Re, through its subsidiary Munich Health North America, Inc., has successfully concluded the acquisition of US Medicare provider Windsor Health Group, Inc. for US$ 131m in cash.
The purchase of Windsor is a further step in Munich Health’s strategy to strengthen its position in the US Medicare market. Under the brand Munich Health, Munich Re combines its global insurance, reinsurance and risk management expertise in the field of healthcare.
Munich Re had announced last October that it would acquire all the shares in Windsor. Pharos Capital Partners was a major investor in Windsor. The transaction was formally completed on 1 January 2011. The purchase price in cash was financed by Munich Re from internal resources. All the requisite approvals have now been obtained from the relevant authorities. Direct operating control of Windsor will lie within the Munich Health North America, Inc. holding structure after the acquisition.
Windsor operates government-sponsored health plans through its Windsor Health Plan, Inc. subsidiary, which provides specialty managed healthcare services in the senior segment to more than 75,000 members in Alabama, Arkansas, Mississippi, South Carolina and Tennessee.
In 2008, Munich Re acquired Sterling Life Insurance Company (Sterling), a specialty health insurer for seniors operating in all 50 states in the US. Windsor and Sterling together will offer services to a combined enrolment of more than 200,000 members across the United States