Bupa Health Assurance’s management team will transfer to Friends Provident following Resolution’s proposed acquisition of the organisation.
The £165.15 million deal is intended to strengthen Friends’ group risk proposition, as well as bolstering its individual protection business.
Friends and Bupa have also agreed to explore ways in which Friends can introduce the Bupa private medical insurance product to its distribution channels and markets. Bupa will in turn look to introduce Friends’ insurance products to its distribution channels and markets.
BHA will be run as a stand-alone business within the Friends provident group for a period of up to a year. The managing director of BHA, Stephen Payne, will report directly to Trevor Matthews.
Bupa says the decision to sell BHA reflects its intention to focus on its healthcare businesses, including its health insurance products and services in the UK. BHA’s group life, critical illness propositions will now sit alongside Friends’ group income protection proposition in a bid to offer a complete suite of group risk products to intermediaries alongside its corporate pension proposition.
Trevor Matthews, chief executive of Friends, says: “This acquisition will strengthen our group risk product range and improve the profitability of our Individual Protection business. The BHA management team led by Steve Payne will bring additional highly valued expertise to the Friends team.”
Dr Natalie-Jane Macdonald, managing director, Bupa Health & Wellbeing says: “Our decision to sell is based on strategic fit. The sale will allow Bupa Individual Protection and Bupa Group Risk to benefit from belonging to a company with a strong focus on both protection and risk.
Importantly, this decision also allows Bupa to concentrate on healthcare products and services.”
Steve Payne, managing director of Bupa Health Assurance, says:”We are excited about becoming part of Friends Provident, which is already a market-leading provider in the individual protection and corporate benefits market. We are committed to ensuring a smooth and successful transition. Throughout this process and beyond, we are open to new business, and are focused on delivering excellent customer service.”