Elevance Health has reached a deal to acquire Granular Insurance Company, a stop-loss insurance unit of Alphabet’s Verily. The terms of the deal were not disclosed, according to a spokesperson for Elevance. Granular, which launched in 2020, uses proprietary technology to provide stop-loss, reinsurance, and fronting services to self-funded employers and captives.
Stop-loss insurance is designed to protect insurers from extremely high or unexpected expenses. The acquisition comes as medical costs continue to rise and ultra-high-cost therapies and treatments are introduced. Employers are likely to be considering options like stop-loss to manage expenses.
For insurers, ongoing pressures on Medicare and Medicaid could lead to an even greater focus on the commercial market.
Elevance Health’s expanding commercial reach
Elevance Health has 24.3 million members across its employer plan products.
Elevance has also made multiple deals recently, continuing to expand its services and market reach. Further updates on this acquisition will be provided as more information becomes available. The sale is part of Verily’s latest operational restructuring as it seeks to refine its role in the healthcare sector.
Verily has been exploring various focuses over the years, including continuous glucose monitoring, COVID-19 pandemic response, and precision medicine. Financial details specific to Granular have not been disclosed by Alphabet, but according to reports, the insurer’s revenue has increased over the past years, generating $201.3 million in revenue in 2022. This acquisition by Elevance is seen as a strategic move to bolster its commercial insurance offerings in an increasingly volatile market.
