ManhattanLife Assurance Company of America has snapped up Las Vegas-based Western Skies MGU for an undisclosed sum.
The acquisition expands ManhattanLife’s reach into the self-funded medical stop loss space.
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Founded in 2019, Western Skies MGU is a national wholesaler as well as Program Manager of self-funded medical stop-loss health plans. It provides Reference Based Pricing (RBP) as well as traditional PPO network options.
Western Skies MGU president Daniel Smith calls the deal a “perfect match”.
“The entrepreneurial culture at ManhattanLife has long fuelled its growth and we are happy to be affiliated with the group,” Smith stated.
Self-insured employers seeking coverage for catastrophic medical and pharmacy claims buy stop-loss coverage. The stop-loss segment is a $24bn market, according to S&P Global.
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By GlobalDataManhattanLife will offer its own stop-loss reinsurance and also continue wholesaling coverage through Western Skies MGU.
ManhattanLife CEO and chairman David Harris said: “The shift to self-insured health plans has been steadily growing over time and has been really pronounced since the inception of the Affordable Care Act.
“Bringing Western Skies experienced underwriting, sales and claims talent into the mix helps achieve our market expansion objectives.”
ManhattanLife Assurance Company of America is one of the six operating life and health insurance companies within the ManhattanLife group. The other companies are The Manhattan Life Insurance Company; ManhattanLife of America; Western United Life Assurance Company; Family Life Insurance Company and Standard Life and Casualty Insurance Company.
In 2018, ManhattanLife Assurance Company of America announced the acquisition of the Workplace Voluntary Benefits (WVB) and Financial Protection Plan (FPP) lines of business of American health insurer Humana.
