In a significant move, Verily has announced the sale of its stop-loss insurance subsidiary, Granular Insurance Company, to Elevance Health. This decision comes amidst turbulent times for Verily, a sister company of Google operating under Alphabet’s “Other Bets” category. Over recent years, Verily has faced considerable challenges as it tried to establish a foothold in the competitive healthcare market. With this sale, it not only addresses the company’s ongoing restructuring but also raises questions about its long-term strategy and direction.
Granular, which was initially launched as Coefficient Insurance Company in 2020, was conceived with substantial backing from the Swiss Re Group’s commercial insurance division. Its business model targeted self-funded employers by offering innovative stop-loss solutions anchored in proprietary technology. This aggressive approach positioned Granular as a notable player in the insurance sector, despite the company having only a few years to establish itself. The undisclosed terms of the sale indicate possible financial motivations, but they underline the accelerated evolution that Verily has undergone, iterating its priorities in response to market dynamics.
Verily’s recent history is rife with substantial shifts and strategic pivots. Originally launched as part of Alphabet’s innovative project incubator X (formerly known as Google X), Verily began by exploring hardware solutions aimed at revolutionizing diagnostics, such as continuous glucose monitors. However, the onset of the COVID-19 pandemic compelled a hasty shift in focus towards pandemic response efforts. The subsequent pivot towards precision medicine in 2022, combined with the unveiling of new AI-driven healthcare solutions like Lightpath, illustrates a company grappling with its identity and market niche.
As Verily navigates these tumultuous waters, the leadership changes within the organization have certainly played a role in shaping its trajectory. High-profile names like Myoung Cha, who previously held a pivotal role at Apple, and Andrew Trister, a founding member of Apple’s health division, have joined Verily, suggesting an ambition to tap into their extensive expertise. Nevertheless, the departure of figures such as Amy Abernethy may imply internal turmoil and the ongoing struggle to maintain a unified vision.
The sale of Granular signals a continued reassessment of Verily’s vision and core competencies amidst a backdrop of increased scrutiny in the healthcare technology space. As the company sheds its insurance offering, it faces the pressing challenge of defining and sticking to a sustainable niche in an industry that is increasingly complex and competitive. While Verily has amassed over $1 billion in investment and attracted top-tier talent, it remains to be seen whether the company’s evolving focus—ranging from pandemic response to precision medicine—will yield a lasting impact or if further adjustments are on the horizon. This strategic sale could serve as a pivotal moment in Verily’s journey, propelling it towards a more cohesive strategy or precipitating further divisions within its ambitious, yet fragmented, enterprise.