Verily CEO tells staff the sale of its insurance business is a ‘strategic win’ as the deal closes

Verily CEO Stephen Gillett. 

Alphabet life sciences unit Verily has officially sold its insurance business to Elevance Health, its CEO told employees last week, as the company continues to shed projects and focus on AI.

In an April 30 memo to staff, which was seen by B-17, Verily CEO Stephen Gillett said Elevance’s acquisition of its stop-loss insurance subsidiary, Granular, had officially closed.

“This acquisition represents a strategic win for Elevance Health, Granular, and Verily,” Gillett wrote in a note to staff.

“On our end, this sale strengthens Verily’s financial position and allows us to reinvest the proceeds towards Verily’s strategic priorities,” he later added.

B-17 first reported in February that Verily had entered an agreement to sell Granular to insurance provider Elevance Health. A Verily spokesperson referred B-17 to a previous statement confirming the company’s agreement to sell Granular.

Companies sometimes take out top-loss insurance to pay their employees’ medical bills and limit their financial exposure, potentially protecting them from sharp increases in spending. Granular launched in 2020 and used “proprietary technology” for its services, the company said.

With its insurance business sold, Verily has shed another project as it aims to further streamline itself and refocus its strategy around AI.