Posted on Sep 01, 2010 by Sergio Ulloa
Philadelphia-based health insurance company CIGNA has announced the recent acquisition of privately owned Vanbreda International, a leading international health insurance company headquartered in Belgium. The deal between the two companies gives CIGNA unprecedented access to the larger international expatriate health insurance market; the two companies have an estimated 700,000 policyholders worldwide.
CIGNA President, William L Atwell, was positive about the deal between the two insurers, stating that "the acquisition demonstrates CIGNA's growth strategy to go deep into existing segments, to go global - seeking worldwide opportunities to diversify our earnings stream, build on strengths and serve customer needs - and to go individual, as Vanbreda International has a growing portfolio of international individual business."
Despite the acquisition of Vanbreda, the company will still continue to operate as an independent business under the leadership of current CEO Rudi Bertels, who said "as we join forces with CIGNA, we look forward to building on our proud legacy of service and adding enhanced capabilities for our customers, such as CIGNA's leading suite of health and wellness offerings."
Vanbreda has been a target for CIGNA for some time now as "there is little overlap between our current businesses and capabilities, bringing mutual opportunity to both," according to Atwell, who also identified the strong "cultural fit" between the two companies as a key motivator for the acquisition.
While CIGNA is a dominant presence in the American health insurance market, providing integrated health services, Vanbreda has a much larger operation in both Europe and Asia. As such, the deal between the two companies is a key component in CIGNA's global strategy, and a vital part of their plans for worldwide growth.
The last 12 months has seen increased movement in the international insurance market, following in the wake of the 2008-2009 global financial crisis. In a global trend, many insurance providers are looking to expand their global presence, with Europe and the developing markets in Asia being cited as the biggest opportunities for success. The acquisition of Vanbreda by CIGNA is the latest development of this movement.
UBS Bank was the financial advisor to CIGNA for the deal, however financial details of the acquisition have not been disclosed.
Insurance Companies Mentioned
A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation's operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.
With over 50 years of experience in the international medical insurance market, Vanbreda covers a myriad of policyholders worldwide. Headquartered in Belgium, Vanbreda believes in product innovation and superior service to customers.