Bupa to focus on health insurance

Bristol-based private health company Bupa have announced it is to sell its assurance business in deal worth GBP165 million, as it focuses more on its healthcare business, including health insurance products in the UK. Bupa will sell its critical illness and life insurance cover operations to buy-out firm Resolution, the owner of Friends Provident, it has been reported.

The move by Resolution for Bupa Health Assurance is intended to reinforce the former’s presence in the group income protection market; it already has seen strong growth in its corporate pensions and individual protection businesses.

Bupa, who employs nearly 300 staff and offers tailored packages to companies that provide income protection, critical illness and life insurance to their employees, as well as the same services to individuals and distributing products through more than 20,000 independent financial advisers (IFAs).

Part of the deal between the two companies is an agreement to look for ways to introduce each other's products to their respective distribution channels.

Bupa's health assurance business was originally set up 16 years ago to provide individual and group protection insurance to complement its main private medical insurance line. Resolution finalised its acquisition of Friends Provident in last year before purchasing the majority of the UK life arm of French insurer Axa last month.