Aviva Health UK has made a "significant" investment to secure a minority shareholding in rehabilitation firm HCML.
The investment in HCML's holding company Ballard Investment marked what HCML chief executive Keith Bushnell has described as a "pioneering joint development in the private medical insurance market".
In a letter sent on Monday, Bushnell informed clients that Aviva's investment will enable the firm to offer a wider range of products in 2011: "Aviva Health is confident that HCML is the right partner to develop and deliver new innovative rehabilitation solutions for its current and future PMI customers."
The two firms already work together through an employee rehabilitation initiative for Aviva's own staff, and HCML currently claims to work with eight of the top 10 UK insurers on rehabilitation case management.
A source close to HCML described the stake as a "significant figure" in both value and shareholding. COVER's sister title, Post Magazine, understands that HCML will remain an independent entity. Ballard has also received additional capital from Maurice Henchey, Ballard chairman, and a further share purchase from Mr Bushnell.
Bushnell added that the "strong financial platform from the new funding opens up major new opportunities for HCML".
As a result of the investment, HCML has been split into two business units, HCML Aviva Services, which will service Aviva PMI customers, and HCML Services, for all other firms.
Asked whether the deal will also fulfil Aviva's liability rehab needs to third parties, an Aviva spokeswoman would only confirm: "We are continuing to collaborate on a range of services, drawing on our combined expertise. New services will be rolled out during the next year, and details will be available nearer the time."
An HCML spokesman would not comment on the possible implications of the deal for Aviva's GI offering, but confirmed it is working on "opportunities with a number of motor insurers".
However, Aviva UK chief executive Mark Hodges this week told Post the firm would seek to gain a closer relationship with rehab firms as a way of addressing personal injury costs: "Rather than paying out for things like whiplash claims, we want to be able to offer a rehab solution.
"When I look at our composite model across general insurance, life and health, this is this sort of area that we should be exploring."
This story first appeared in Post Magazine.
