Insurance acquisitions

It may be purely coincidental, but amid all the changes that have been happening in healthcare, there were two takeover deals announced recently involving health insurers.

Standard Life announced that it has acquired First Assist. This used to be the health insurance division of Royal and SunAlliance before it was the subject of a management buyout in 2003. In addition, the French company, Groupama, has announced its purchase of Clinicare from another French insurer, AZUR-GMF.

Of the two, Standard Life's acquisition appears the more significant. First Assist has about 4% market share which, when added to its own, should give Standard Life close to 11%; enough to take over third place from Norwich Union behind BUPA and AXA PPP. Clinicare has approximately 1% market share, a figure similar to that of its new owners.

Among the many factors that influence any acquisition, it may be that the apparently gloomy prospects for organic growth in the health insurance market have been a consideration in these cases.

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The information contained in this document is of a general nature only and should not be relied upon as advice in any specific situation.

For further information, please telephone your usual contact at Buck Consultants (Healthcare):

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