Canada Life Assurance Company (Canada Life) has reached an agreement to acquire ClaimSecure, a healthcare management firm that offers health and dental claim management services to Canadian private and public businesses.
The transaction is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to close in the third quarter of 2021.
Canada Life is a subsidiary of Great-West Lifeco.
The transaction helps Canada Life further invest in its workplace capabilities in Canada, which is a core focus for Great-West Lifeco. The acquisition also increases the number of plan members served by Canada Life by 1.25 million individuals (including plan members and their dependents) with annual claims payments of over $1.2 billion.
Canada Life has also stated that the acquisition enhances its presence in the third-party administrator and third-party payor business segments. It also makes Canada Life the first major Canadian insurer to own and operate a pharmacy benefits manager that has national claims-paying capabilities.
"The acquisition of ClaimSecure enhances our ability to provide leading workplace benefits solutions by extending our presence in a growing segment of the market," said Canada Life president and chief operating officer Jeff Macoun. "This transaction aligns with our priority of building lifetime customer relationships with the workplace plan members we serve."
"This transaction is a great strategic fit and aligns two like-minded companies with complementary areas of expertise," added Canada Life executive vice president of group customer Brad Fedorchuk. "We're excited to bring ClaimSecure into the fold and create an additional channel to provide products, plans and technology solutions to even more customers in Canada."
Following the acquisition, ClaimSecure’s main operations centre will remain in Sudbury, Ontario, and its head office will remain in Mississauga, Ontario.
