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Verily, the health tech company under Alphabet, has confirmed the sale of its stop-loss insurance subsidiary, Granular Insurance Company, to Elevance Health. This announcement was made to CNBC on Thursday and is part of a broader strategy of restructuring at Verily.
Granular, which was previously known as Coefficient Insurance Company, was established in 2020 with support from the Swiss Re Group’s commercial insurance unit. The subsidiary was designed to provide medical stop-loss insurance solutions for self-funded employers, integrating advanced technology to enhance its offerings.
The specific financial details of the transaction were not shared, but this move marks the latest in a series of significant changes for Verily. Over recent years, the company has undertaken substantial workforce reductions, redefined its operational focus, and changed its executive leadership, all in pursuit of a more sustainable business model.
With over $1 billion raised, Verily has made notable hires from other tech giants, including Myoung Cha, former head of health strategic initiatives at Apple, who joined as chief product officer last year. Additionally, Andrew Trister, the chief medical and scientific officer, was among the original members of Apple’s health team. Amy Abernethy, formerly a principal deputy commissioner at the U.S. Food and Drug Administration, also contributed to Verily’s leadership before her departure in late 2023.
Despite these efforts, Verily has faced challenges in firmly establishing a niche within the healthcare sector. Originating from Alphabet’s innovation lab X in 2015, the company initially focused on developing healthcare hardware such as continuous glucose monitors. However, it shifted gears in response to the Covid-19 pandemic and then repositioned itself towards precision medicine in 2022.
In June, Verily launched Lightpath, a new AI-driven chronic care solution targeting metabolic health, which is aimed at patients using GLP-1 medications for weight management. This reflects the company’s ongoing evolution in addressing various health needs, even as it exits the insurance market.
The acquisition by Elevance Health comes amidst a period of transition for Verily, as it seeks to redefine its strategies in the dynamic healthcare landscape. A request for additional comments from Elevance Health was not immediately fulfilled. The details of the agreement were initially disclosed by Business Insider.
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