Discovery buys Standard Life’s health insurance business

By Ben | Published May 13, 2010

South African financial services provider, Discovery Holdings Ltd. has agreed to buy Standard Life plc’s U.K. private health insurance business through its joint venture company with Prudential.

Standard Life is set to sell Standard Life Healthcare to the Prudential-Discovery joint venture company, PruHealth, for 138 million pounds (US$ 205 million) pending regulatory approval from the South African Reserve Bank and Britain’s Financial Services Authority. Standard Life Healthcare, which is the 4^th largest private health insurer in the U.K., will have its business assimilated into PruHealth.

While Standard Life’s private health insurance business is being procured through PruHealth, Discovery is the sole company financing the deal, and is purchasing Standard Life Healthcare without the help of Prudential. Once the deal is completed it will bring Discovery’s stake in the PruHealth joint venture to 75%, up from 50%. The deal is expected to be formally transferred on July 31, 2010 and Standard Life Healthcare is not expecting major changes to customer’s plans or services.

Insurance Companies Mentioned:

Discovery Holdings Ltd.

Discovery is a financial services provider based in Johannesburg, South Africa, and was founded in 1992. Discovery offers health and life insurance in different markets as well as investment services and credit cards. They also have a joint venture life and health insurance companies with Prudential called PruHealth and PruProtect, which are structured under the PruProtection banner.

Standard Life plc

Standard Life was established in 1825 and headquartered in Edinburgh, Scotland. Since its beginnings, Standard Life has expanded into a financial services company offering pensions, life assurance, and investment management to over 6.5 million customers around the globe.

Prudential

Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.