Munich Re unit buys stop-loss MGU

PRINCETON, N.J.--Munich Re America HealthCare, a unit of Munich Reinsurance America Inc., has agreed to acquire Cairnstone Inc., a Miami-based managing general underwriter providing stop-loss insurance for self-insured employers.

Under the transaction, which is expected to close in September, the Princeton, N.J.-based Munich Re Group unit will buy the 75% stake in Cairnstone that it does not already own.

Cairnstone, which currently manages more than $80 million in stop-loss business, will operate independently and retain its name while keeping its core management, the companies said in a statement.

Cairnstone also provides catastrophic medical coverage for hospital and physician groups.