The administrators of Global Benefits Group Insurance Limited have completed the sale of GBG’s international education insurance segments to Bison Capital.
The Californian private equity investor revealed it has led an acquisition of the international education insurance segments from Global Benefits Group, Inc and its affiliated insurance company GBG Insurance Limited along with the fully integrated administration platform to service the businesses.
The move follows Global Benefits Group (GBG) Insurance Limited entry into administration at the end of last year after a last-ditch bid to rescue the international private medical insurance (IPMI) provider collapsed from a multi-million pound financial blackhole resulting in a shortfall in capital. The company provided policies for approximately 150,000 individuals when it entered administration.
Health & Protection has since confirmed that only GBG Insurance Ltd, which provides individual and group policies on both a direct and reinsured basis, and administers insurance across the US, Latin America Europe and certain Asian markets, was in administration.
Bison Capital, in conjunction with the management teams of the business units it will acquire, purchased TieCare International, Clifford Allen Associates | SHIP and GBG’s international student businesses.
Going forward, United States Fire Insurance Company, and its affiliate underwriting companies operating under the registered trademark of New Jersey-based Crum & Forster is now the exclusive insurance provider on all three books of business.
Bison Capital said it will provide “substantial financial support” to build the business going forward in partnership with Crum & Forster.
The transaction was developed with and agreed by GIL’s court appointed joint administrators and received the consent of the Guernsey Financial Services Commission.
The three businesses will now operate as TieCare International, Clifford Allen Associates | SHIP, and USCHIP (US College Health Insurance Plans), the new brand of the international student business.
All three businesses will be operated under the umbrella of Total Scholastic Solutions (TSS).
Confirming the sale in an update on its website, GBG revealed all policyholder benefits are now secured by Crum & Forster.
It added existing TieCare policies remain in place and with the same benefits and terms as before and TieCare International policy holders should email their TieCare regional representative or call GBG Assist if they have questions about their existing policy.
Bison said the deal “provides policy holders and healthcare providers with certainty of payment on all claims on a go-forward basis and there are no changes to any of the existing policies”.
It added the management team “will focus exclusively on the scholastic market, providing students and educators with tailored insurance solutions in the United States and around the world and TSS will look to grow and expand its insurance offerings and continue to provide claims and customer service support”.
Doug Trussler, partner of Bison Capital, said: “We are excited to acquire these three strong business segments and their management teams.
“We have full confidence that TieCare, CAA and USCHIP will continue to be dominant players in their respective markets.
“As we continue to expand our business, we have 100% support of our insurance partner Crum & Forster in building a scholastic insurance platform.”
Mark Tomaszewski, president of TieCare, said: “This transaction allows TieCare to remain a leading go-to insurance brand for international schools.
“We look forward to continuing to serve our long term customers and adding new clients as well.”
Ford Allen, president of CAA, said: “CAA is excited to return to its roots as an independent company focusing on what it does best – insurance solutions for the inbound international student.”
Margaret McGannon, president of USCHIP, said: “We are thrilled to be a part of a company that is committed to service excellence.
“The USCHIP team looks forward to growing our portfolio through client engagement and product innovation in the scholastic segment.”
Alex Adam of Teneo Financial Advisory Limited, joint administrator of GIL, added: “We are pleased to have reached an agreement which has secured a buyer for Global Benefits Group’s international education insurance businesses and its administration platform. Bison Capital’s acquisition of these assets will ensure continuity of service and benefits for a large number of GIL’s customers.”
Health & Protection has contacted Bison Capital for further details about the deal.