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Alphabet's Verily to Offer Stop-Loss Insurance Via Subsidiary
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Alphabet’s (GOOGL - Free Report) healthcare unit Verily in association with Zurich-based insurance firm Swiss Reis forming a subsidiary —Coefficient Insurance Co.
Notably, Swiss Re will hold minority stake in the new subsidiary, which is being created to offer stop-loss insurance.
Further, the new firm will be a combination of Swiss Re’s solutions out of the corporate client toolbox and Verily’s data science, hardware and software.
We note that Verily strives to protect employers from unreasonably high amount of claims owing to stop-loss insurance.
This kind of protection will aid Coefficient Insurance’s in gaining traction among employers, which in turn will drive its business growth.
Growth Prospects
Notably, the latest move will bolster presence of Alphabet in the health insurance market. Additionally, the move is in sync with the company’s continued efforts to expand foothold in the health insurance space.
According to a report from Allied Market Research, the global health insurance market is expected to hit $4.5 trillion by 2026, witnessing a CAGR of 4.4% between 2019 and 2026.
Further, a report from S&P Global Intelligence suggests that stop-loss insurance market is valued at $20 billion.
We believe Alphabet is well-poised to capitalize on these growth prospects on the back of its newly formed subsidiary, Coefficient Insurance.
Notably, Verily, which is Alphabet’s life science division, has become an integral part on the back of its technology solutions in the multi-trillion healthcare industry.
Its recent initiative in the health insurance space remains noteworthy.
It holds promise in the ongoing pandemic scenario that is triggering tremendous disruptions to the economies, which in turn, is impacting business health of companies globally.
Stop-loss insurance will help companies in cost reduction, which has become crucial during this unprecedented crisis triggered by the coronavirus.
The latest move is expected to drive Verily’s business growth. We note that Verily is part of Alphabet’s Other Bets segment. Hence, it is expected to drive growth in this particular segment.
Zacks Rank &Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Lam Research, Blackbaud and Shopify is pegged at 15.42%, 7.59% and 32.5%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Alphabet's Verily to Offer Stop-Loss Insurance Via Subsidiary
Alphabet’s (GOOGL - Free Report) healthcare unit Verily in association with Zurich-based insurance firm Swiss Reis forming a subsidiary —Coefficient Insurance Co.
Notably, Swiss Re will hold minority stake in the new subsidiary, which is being created to offer stop-loss insurance.
Further, the new firm will be a combination of Swiss Re’s solutions out of the corporate client toolbox and Verily’s data science, hardware and software.
We note that Verily strives to protect employers from unreasonably high amount of claims owing to stop-loss insurance.
This kind of protection will aid Coefficient Insurance’s in gaining traction among employers, which in turn will drive its business growth.
Growth Prospects
Notably, the latest move will bolster presence of Alphabet in the health insurance market. Additionally, the move is in sync with the company’s continued efforts to expand foothold in the health insurance space.
According to a report from Allied Market Research, the global health insurance market is expected to hit $4.5 trillion by 2026, witnessing a CAGR of 4.4% between 2019 and 2026.
Further, a report from S&P Global Intelligence suggests that stop-loss insurance market is valued at $20 billion.
We believe Alphabet is well-poised to capitalize on these growth prospects on the back of its newly formed subsidiary, Coefficient Insurance.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Wrapping Up
Notably, Verily, which is Alphabet’s life science division, has become an integral part on the back of its technology solutions in the multi-trillion healthcare industry.
Its recent initiative in the health insurance space remains noteworthy.
It holds promise in the ongoing pandemic scenario that is triggering tremendous disruptions to the economies, which in turn, is impacting business health of companies globally.
Stop-loss insurance will help companies in cost reduction, which has become crucial during this unprecedented crisis triggered by the coronavirus.
The latest move is expected to drive Verily’s business growth. We note that Verily is part of Alphabet’s Other Bets segment. Hence, it is expected to drive growth in this particular segment.
Zacks Rank &Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader computer and technology sector are Lam Research (LRCX - Free Report) , Blackbaud (BLKB - Free Report) and Shopify (SHOP - Free Report) , all of which flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Lam Research, Blackbaud and Shopify is pegged at 15.42%, 7.59% and 32.5%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>