Verily, Alphabet Inc.‘s GOOGL GOOG health technology subsidiary, announced Thursday it will sell its stop-loss insurance business, Granular Insurance Company, to Elevance Health ELV. The deal marks another strategic pivot for the Alphabet unit as it refocuses its healthcare initiatives.
What Happened: The sale comes as Verily undergoes significant organizational changes, including a planned separation from Google’s infrastructure by December.
While financial terms weren’t disclosed, the transaction represents Verily’s exit from an insurance venture it launched in 2020 with backing from Swiss Re Group‘s commercial insurance division, reported CNBC.
Granular Insurance, which originally operated as Coefficient Insurance Company, provided self-funded employers with medical stop-loss coverage and reinsurance solutions utilizing proprietary technology. The business emerged during a period of rapid expansion for Verily, which has raised over $1 billion and attracted prominent healthcare executives from companies like Apple Inc.
Why It Matters: The company’s evolution reflects its search for a sustainable healthcare niche. Since launching as a moonshot project within Alphabet’s X innovation lab in 2015, Verily has shifted focus multiple times – from hardware development to pandemic response in 2020, and later to precision medicine in 2022.
Recent executive changes have also shaped Verily’s direction. While the company has recruited talents like Myoung Cha, Apple’s former head of health strategic initiatives, and Andrew Trister, a founding member of Apple’s health team, it also saw the departure of key leaders like Amy Abernethy, who left in late 2023 after joining from the FDA in 2021.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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