Aflac has also purchased the assets required to support the group life and disability business and an absence management platform
Aflac, through its subsidiaries, has completed the acquisition of US Corporate Life and Pensions (Group Benefits) business from Zurich North America, a provider of risk management and insurance solutions.
In addition to the Group Benefits, the company has also purchased the assets required to support the group life and disability business and an absence management platform.
Aflac US president Teresa White said: “We are excited as we welcome new team members to the Aflac family and enhance our value proposition to agents, brokers and employers.
“This strategic buy-to-build transaction aligns with our vision of being the number one distributor of benefit solutions supporting the U.S. workforce.
“We believe this acquisition will also enhance cross-selling opportunities and improve both persistency and account penetration with our core supplemental business.”
Aflac acquired Benefit Harbor Insurance Services along with Group Benefits
In March this year, the company announced that its subsidiaries Aflac of Columbus and Aflac of New York are reinsuring Zurich North America’s US in-force group life and disability policies with an annualised premium of around $120m, on an indemnity basis.
The subsidiaries have acquired the assets and workforce of Benefit Harbor Insurance Services, to support the Group Benefits’ life, disability and absence management products.
Aflac said that the transaction is in line with its strategy of buy-to-build, and would deploy the capital into growth initiatives while limiting the capital at risk.
The company has used its internal capital for funding the transaction, along with required capital to support the assumed businesses, worth less than $200m.
Aflac US executive vice president and chief distribution officer Richard L Williams, Jr. said: “This further enhances Aflac’s value proposition to be on the front page of benefits enrollment leveraging the power of Aflac’s brand and broad distribution of associates and broker partners.
“With our national expansion into network dental and vision in 2021 and now true group benefits, Aflac continues to deepen the relationships with employers and policyholders.”