HealthSmart Holdings Inc., announced that it has completed the acquisition of the Wells Fargo Disability Management (WFDM) unit of Wells Fargo Insurance Services, part of Wells Fargo & Company (NYSE: WFC). Terms of the transaction, which closed on June 1, 2013, were not disclosed. The new business unit will be renamed HealthSmart Casualty Claims Solutions.
HealthSmart will acquire the operating assets and related liabilities of Wells Fargo Disability Management. As part of the transaction, HealthSmart will add approximately 160 Wells Fargo Disability Management employees and maintain offices in the existing six locations, four of which are new markets for HealthSmart Florida, Virginia, Pennsylvania and Ohio. Following the acquisition, HealthSmart will have annual revenues of more than $ 190 million and more than 1,400 employees.
Anne Doss, executive vice president and head of the Personal and Small Business Insurance division at Wells Fargo, said Wells Fargo Insurance will continue to bring both medical and disability management third-party administration (TPA) solutions, as well as General Liability and Auto Liability services to its customers nationwide using HealthSmarts broad networks and capabilities. Along with HealthSmarts 40 year track record of providing excellent customer service, WFDM will provide our customers with quality service and greater access to the medical and disability solutions they need.
During the past year, HealthSmart has acquired seven other benefits administrators, said Daniel D. Crowley, Chairman of HealthSmart. We are very focused on creating economies of scale that allow us to provide new and existing clients with high quality solutions at the best possible value. Our size, geographic coverage and high quality integrated managed care offerings make it possible for HealthSmart to meet the health benefit needs of self-funded employer groups of all sizes.
Jim Pennington, President of HealthSmart, said, This acquisition fuels our growth strategy, especially in our Eastern Region. In addition, it will allow us to diversify our product and service offerings. Both HealthSmart and Wells Fargo Disability Management have customer-centric cultures and strive for excellence on a daily basis. We welcome the employees and the clients of WFDM to HealthSmart.
On December 31, 2011 HealthSmart completed its acquisition of Wells Fargo Third Party Administrators, Inc., the medical third-party administration (TPA) business of Wells Fargo Insurance.
For more than 40 years, HealthSmart has offered a wide array of customizable and scalable healthcare administrative solutions. It specializes in self-funded insurance solutions and comprehensive wellness programs for employers through its broker distribution network. The company’s headquarters is in Irving, Texas, with regional hubs throughout the country. HealthSmarts mission is to improve member health and reduce healthcare costs.
About Well Fargo
Wells Fargo Insurance is the fifth largest insurance broker in the world (Business Insurance, 2012). With 127 offices in 37 states, Wells Fargo Insurance provides solutions for a wide range of customers, including retail consumers, high net worth individuals, small businesses, as well as middle market and large corporate customers. The 7,000 insurance professionals of Wells Fargo Insurance write or place $ 15 billion of risk premiums annually in property, casualty, benefits, international, personal lines, and life products and also includes the nations largest crop insurance provider, Rural Community Insurance Services (RCIS).
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $ 1.4 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and has offices in more than 35 countries to support the banks customers who conduct business in the global economy. With more than 270,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortunes 2012 rankings of Americas largest corporations. Wells Fargos vision is to satisfy all our customers financial needs and help them succeed financially.