Standard Life has agreed to sell Standard Life Healthcare to a subsidiary of Discovery Holdings. The sale is subject to approval by the Financial Services Authority and the South African Reserve Bank and is expected to take place on 31 July 2010.
Standard Life Healthcare is the fourth largest provider of private medical insurance with a market share of approximately 8 per cent, offering a full range of products to individuals and businesses. It employs over 500 people.
David Nish of Standard Life comments, ”Standard Life Healthcare is a leading and successful business, but in the context of sharpening our strategic focus on the long-term savings and investments market we concluded it is not core. Discovery is a highly respected global health insurer with an established presence in the UK. The sale provides an excellent outcome for Standard Life Healthcare’s customers, commercial partners and employees.”
Discovery is a leading financial services institution operating in insurance, long-term savings and well-being in South Africa, the United Kingdom, the United States and China. In the UK Discovery operates via a joint venture with Prudential, of PruHealth, a specialist private medical insurer, and. PruProtect.
Following completion and a transitional period the aim is to re-brand Standard Life Healthcare as PruHealth and merge the two businesses.