Travel insurer Cover-More has outlined changes to its operating model in a bid to reverse its fortunes following a 27.5% drop in net profit to $18.7 million last financial year.

Group CEO Mike Emmett says the changes focus on core operating platforms in key markets including Australia and the US, which has been singled out as a growth area.

Senior appointments have been made to oversee the new structure, which also involves the creation of a technology division managed by Scott Adams.

“The new operating model leverages our core operating platforms in Australia and New Zealand, in India and, with the acquisition of Travelex Insurance Services, in the US,” Mr Emmett told the group’s AGM last week.

“This will allow us to efficiently drive global growth at optimal cost by centralising core support services.”

The Sydney-based company says the acquisition of Travelex – the third-largest retail travel insurance specialist in the US – will bolster Cover-More’s business in the world’s biggest economy.

“Travelex Insurance Services is an excellent strategic fit... because it gives us an accelerated growth path in the North American market and adds considerable scale to our global platform,” Mr Emmett said.

“The acquisition also gives us access to a well-known brand name, which Cover-More can use in perpetuity, and on a global basis.

“We intend to focus on unlocking incremental value by combining Travelex Insurance Services and Cover-More’s existing operations and capabilities in the US.”

Cover-More expects to complete the $US105 million ($137.1 million) acquisition this month.

Travelex has licences in all US states, and about 3400 distribution partners in the country.