COLUMBIA, SC – November 19, 2007 – Companion Life Insurance Co. announced today it has purchased Pennsylvania-based Montgomery Management Corp., a managing general underwriter (MGU) of stop loss coverage for employer health plans, from HealthPlan Holdings Inc. of Tampa, Fla.
The acquisition includes Montgomery Management’s headquarters in Blue Bell, Pa., and its other offices, located in Grand Rapids, Mich.; Overland Park, Kan.; Charlotte, N.C.; Houston; and Tampa. Montgomery Management, with more than $45 million in annual premiums, has 18 employees.
Companion Life President Trescott N. Hinton Jr. said Montgomery Management Corp. will retain its name and continue to operate independently, with its core management team in place under the current MGU model. Anne Marie McCarthy will continue serving as Montgomery Management’s president.
“We are very excited about our ownership of Montgomery Management,” Hinton said. “We view this as an excellent strategic fit and are looking forward to significant growth opportunities. This demonstrates our commitment and desire to continue in this market.”
Montgomery Management Corp. (www.montmgmt.com), formerly a wholly owned subsidiary of HealthPlan Holdings, has been an MGU of stop loss coverage for employer health plans since 1989. The company has worked with Companion Life as an MGU since January 2004.
Montgomery Management provides a full range of services, including underwriting, policy binding, contract issuance, premium collection and claims payment. In addition to stop loss, it provides life, accidental death, and short- and long-term disability coverage.
“This is great news for Montgomery Management,” said McCarthy. “We have built an incredible partnership with Companion Life that has resulted in consistent value, extraordinary service and financial stability for our clients. We are excited about the many additional benefits that we will be able to bring to our clients as a result of this transaction.”
About Companion Life
Headquartered in Columbia, S.C., Companion Life Insurance Co. (www.CompanionLife.com) has specialized in employee benefits since 1971. The company markets life, dental, disability, accident and specialty health insurance products through a network of independent agents and brokers, general agents and managing general underwriters.
Companion Life markets its products in 45 states and the District of Columbia. The company holds an A+ (Superior) rating from A.M. Best Company.
About HealthPlan Holdings
HealthPlan Holdings (www.healthplanholdings.com), a Sun Capital Partners Inc. affiliate, is the largest privately held outsourcing solutions company for fully insured employee benefit services for insurance companies and managed care organizations that serve this market. Since 1970, HealthPlan has offered customized administration and distribution services to insurers in the individual, small business, association and voluntary-worksite niche, and services thousands of brokers and agents who sell into this market.