Munich Reinsurance America Inc. has agreed to acquire full ownership of Cairnstone Inc.
Munich Re, Princeton, N.J., is a unit of M?nchener R?ckversicherungs-Gesellschaft A.G., Munich.
Cairnstone, Miami, is a large managing general underwriter in the U.S. medical stop-loss market.
The companies are not saying how much Munich Re is paying for Cairnstone, but they say they hope to complete the deal in September.
Cairnstone would keep its name and continue to operate independently under the direction of its current managers, the companies say.
Munich Re already owns 25% of Cairnstone. The proposed deal would give Munich Re ownership of 100% of Cairnstone’s stock, according to Munich Re executives.
The deal “further demonstrates our commitment to the U.S. health care market,” Wolfgang Strassl, a member of the Munich Re board, says in a statement about the deal.
James Tillett, president of Cairnstone, notes that Cairnstone has had a relationship with Munich Re for about a decade.
Cairnstone was founded in 1996 and now has a total of 10 offices.