Applications of Group Ciphers
What they are calling a "group cipher" is much more commonly referred to as proxy re-encryption. Proxy re-encryption is typically asymmetric but I don't think there is anything prohibiting it being symmetric. It has many applications (see this list) but most of these applications are using the asymmetric variants. I myself cannot point to another application of symmetric proxy re-encryption.

One drawback is that it is almost as expensive as an asymmetric scheme, so there is little reason to prefer it with today's computational abilities. 

Another is that it requires a small multi-party computation between the three parties so that the third party learns the ratio key without Alice or Bob learning it, or the third party learning anything other than it. This MPC requires secure channels, which for all scenarios where at least one pair of parties haven't exchanged keys in-person, this means using asymmetric cryptography to setup the channels.