Axa PPP Healthcare is to acquire Simplyhealth’s private medical insurance (PMI) business, subject to approval by the appropriate authorities.
The sale by Simplyhealth follows a strategic review of the organisation’s activities, informed by an 18-month analysis of the marketplace and an insight project involving interviews with 5,000 people and 250 organisations.
As a result, it plans to grow its health cash plan and Denplan offerings for its employer clients.
Under the agreement, nearly all of Simplyhealth’s 390 Bristol-based employees, as well as a small number of employees based in other locations in the UK, will transfer to Axa PPP Healthcare under the Transfer of Undertakings (Protection of Employment) (Tupe) regulations, .
The PMI business will continue to operate from Simplyhealth’s Bristol offices, which Axa will acquire.
Simplyhealth’s employer clients will transition over to Axa PPP Healthcare.
Romana Abdin, chief executive of Simplyhealth, said: “We are going to focus on everyday healthcare, where we see numerous growth opportunities in services to address the everyday things that stop our customers from making the most of life.
“Problems like back pain, toothache, eyesight difficulty, mobility and independence. This is where demand is rising inexorably. The sale of our PMI business will provide us with funds to accelerate this strategy.”
Keith Gibbs, chief executive of Axa PPP Healthcare, added: “With its well-balanced, stable book of business, Simplyhealth’s PMI business will be an excellent addition to Axa PPP Healthcare, and this agreement has presented a rare opportunity to acquire a complementary business in the UK.
“Both organisations share a commitment to offering outstanding customer service, supporting their local communities and being an employer of choice.
“We look forward to working with Simplyhealth and its intermediary partners to ensure a smooth transition, providing excellent service and continuing cover for all individual and business customers.”