AXA S.A. is jumping into the U.S. benefits administration market.
The Paris-based insurer has agreed to acquire Maestro Healthcare Technology Inc., a Chicago-based benefits administrator, for $155 million. AXA hopes to complete the deal by March 31.
AXA is a major provider of private health insurance outside the United States, but it's best known in the United States as a life insurance and annuity issuer.
Maestro, which was founded in 2013 and is backed by private investment firms, has about 300 employees.
Maestro aims at large employers with self-funded health plans. The company and its maestroEDGE benefits system serve about 500 groups with 1 million covered lives, according to Maestro.
The company can handle benefit plan enrollment, health plan administration, wellness program and chronic condition program management, health savings account (HSA) administration, benefits product billing, and Affordable Care Act compliance services.
Maestro will keep its name after the deal is completed and operate as a wholly owned subsidiary of AXA, Maestro says.
Guillaume Borie, AXA's chief innovation officer, said in a statement that AXA likes the idea of pursuing a population health management strategy in the U.S. market.
The Maestro deal "provides an attractive opportunity to build our presence in the U.S. health care market with a new business model that has the potential of improving health care quality for millions of employees," Borie said.
AXA's deal announcement comes on the heels of Tata Consulting's move to jump into the U.S. insurance administration market by setting up a large administration program for Transamerica.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.