Standard Life Healthcare has bought FirstAssist's private medical insurance (PMI) business for an undisclosed sum.
The acquisition, subject to Financial Services Authority approval, is expected to be completed in Q1 2006.
It will include the transfer of all FirstAssist's employees engaged in the PMI business to Standard Life Healthcare along with all its current contracts. As part of the acquisition, Standard Life Healthcare has announced that it will be moving its head office operations, currently based in Guildford, to FirstAssist's office in Bournemouth. The move will take place over the next two years and Standard Life Healthcare staff will be given the option whether they would like to reallocate or take out voluntary redundancy. Commenting on the announcement, Mike Hall, chief executive at Standard Life Healthcare, said: "The acquisition allows us to grow profitably at a faster pace than could otherwise have been achieved."
Tim Ablett, chief executive of FirstAssist, said he was delighted with the move. "This is a great deal for both organisations and provides exciting opportunities for further collaboration for the benefit of our respective customers, brokers and other intermediaries. Both companies believe this transaction creates a real challenge for other players in both the private medical insurance and health and well being sectors."
In the joint venture, FirstAssist will provide its services to Standard Life Healthcare and market Standard Life's PMI products. Intermediary customers of both firms will not be affected by the acquisition and advisers can continue to advise on FirstAssist products at their agreed commission.
