Bupa has sold its UK life business, Bupa Health Assurance Ltd (BHA), to Resolution Ltd, a financial services group that owns Friends provident and Axa Life. The sale is subject to regulatory approval, but as Bupa is not a major life company, objections are not expected.
The decision to sell BHA reflects Bupa’s intention to focus on its healthcare businesses, including its health insurance products and services in the UK that offer private medical, health cash and international private medical insurances. BHA will be run as a stand-alone business within the Friends Provident group for up to a year.
Dr Natalie-Jane Macdonald of Bupa says, “Bupa Individual Protection and Bupa Group Risk, both have reputations for high-quality products and customer service. 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.”
Friends Provident and Bupa have agreed to work together to explore ways in which Friends Provident can introduce the Bupa private medical insurance product to its distribution channels and markets and Bupa can introduce the Friends Provident insurance products to its distribution channels and markets.
Bupa Health Assurance’s businesses include Bupa Group Risk and Bupa Individual Protection. Bupa Group Risk provides companies with tailored packages that offer income protection, critical illness and life insurance to their employees, while Bupa Individual Protection offers the same products to individuals.
Resolution’s objective is to acquire businesses and provide the public markets with a series of restructuring opportunities in the financial services industry.
Trevor Matthews of Friends Provident says, “This acquisition will strengthen our group risk product range and improve the profitability of our individual protection business.”