NU Online News Service, July 7, 2003, 1:25 p.m. EDT – Universal American Financial Corp., Rye Brook, N.Y., says it has agreed to acquire the marketing organization of Guarantee Reserve Life Insurance Company, Calumet City, Ill., from a subsidiary of Swiss Reinsurance Company, Zurich.
The price of the deal and other terms were not immediately available.
Swiss Re reported in February that it had agreed to buy Guarantee Reserve from Irish Life & Permanent P.L.C., Dublin, for $121 million.
Universal American is best known for selling insurance products aimed at older Americans and for selling administrative services for other insurers that operate in the senior market.
Guarantee Reserve sells funeral insurance. The company generated $38 million in new life premiums in 2002, Universal American says.
Universal American reports that it already has hired the marketing staff of Guarantee Reserve and hopes that the producers who used to represent Guarantee Reserve will now represent Universal American.
Universal American also plans to reinsure a portion of Guarantee Reserve’s existing accident and health business and get regulatory permission to issue Guarantee Reserve’s policies through a Universal American subsidiary.
Once Universal American begins issuing Guarantee Reserve policies, Swiss Re will reinsure 50% of the coverage sold, Universal American says.
While Universal American is waiting for permission to issue the policies, it will reinsure 50% of the coverage sold on the old Guarantee Reserve forms, Universal American says.