(May 15 – 13:15 ET) – The reinsurance operation of Winnipeg-based Great-West Life Assurance Co., through LRG (U.S.) Inc., has acquired a 51% controlling interest in Health Reinsurance Management Partnership (HRMP) based in Danvers, Mass.
HRMP, established in 1991, provides various fee-based services on behalf of insurers and reinsurers associated with the formation, management and administration of health reinsurance facilities. Services provided include underwriting, collecting and remitting of premiums, administering claims payments and other ancillary services. In 1999, HRMP had total revenues of US$9 million and net income before tax of US$1.5 million.
“Great-West has identified reinsurance as a core business, as it offers an important source of business and international diversification from our traditional retail insurance,” said Raymond L. McFeetors, president and CEO of Great-West Life. “Our strategy is to supplement this business through selective acquisitions over time, in related reinsurance businesses where we have or can acquire specialized knowledge and expertise.”
-IE Staff