Posted on Sep 02, 2010 by Sergio Ulloa
After having received approval from Britain's Financial Services Authority and the South African Reserve Bank, the acquisition of Standard Life's health insurance division, Standard Life Healthcare, by Discovery Holdings has been completed, putting PruHealth in a strong position for growth.
The finalized acquisition and integration of the companies over the next few months will make PruHealth a competitor of scale in the UK private medical insurance market, growing the number of people covered up to 700,000 and boosting market share up to 11 percent. The additional business makes PruHealth the fourth largest private medical insurer in the UK.
The integration of the two companies will take some months, and when it arrives it will see a suite of private medical insurance products based upon the best aspects of currently available insurance policies from PruHealth and Standard Life Healthcare. The new product suite is expected to be ready by the end of 2010, but in the mean time PruHealth will continue to service and sell all products from both PruHealth's and Standard Life Healthcare's ranges.
While the integration and new product suite is being arranged, there will be no changes to broker arrangements, customer service, existing policies and account management and sales support for products offered by PruHealth and those previous offered by Standard Life Healthcare. If there are any planned changes to a customer's policy, they will be notified when the policy is up for renewal.
In the transitional period previous Standard Life Healthcare policies will be referred to under a new brand as 'PruHealth Previously Standard Life Healthcare', in order to ensure the integration is done smoothly.
The previous Chief Executive Officer of Discovery Health, Neville Koopowitz, has been appointed as the new CEO of PruHealth. Mr. Koopowitz said that "We are proud to be able to bring to clients both the award-winning product innovation and the excellent service history of two leading PMI businesses, and are excited about the opportunity to further develop our presence in the UK market. We are working hard to bring clients a new product suite, building on PruHealth's wellness expertise and Standard Life Healthcare's emphasis on outstanding service and comprehensive coverage."
Insurance Companies Mentioned:
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.
PruHealth is part of a joint venture named Prudential Health Holdings Limited, between Prudential Assurance Company of the UK and Discovery Holdings. The joint venture was started in 2004 and offers private medical insurance in the United Kingdom. Currently Discovery Holdings owns a 75 percent stake in the joint venture while Prudential Assurance holds the remaining 25 percent.