AIG Life Acquires UK Group Risk Carrier Ellipse from Munich Re
American International Group (AIG) and Munich Re in June 2018 announced that AIG Life Ltd. (AIGLL), a UK subsidiary of AIG Life & Retirement, has agreed to acquire Ellipse, a specialist provider of group life risk protection in the UK, from Munich Re.
Ellipse’s group protection products, which include life, critical illness and income protection, along with its technology-enabled business model with high levels of straight through processing (STP), will position AIGLL to offer group risk plans for companies of all sizes.
Since its launch in 2009, Ellipse has grown to become the 6th largest UK group life provider based on 2017 new business volumes. Ellipse has reached an 8% share of new business premiums and a 4% share of in-force premiums in 2017. As of May 2018, the company holds approximately £64 million of in-force premiums and nearly 4,500 in-force policies covering over 370,000 lives.
The terms of the transaction were not disclosed. It will be fully funded with cash and is expected to close in the first quarter of 2019.