BUPA have been bought for a few pounds… £102 million of them to be precise. The buyer? well in times like these only a few options are likely – those within the industry will be aware that Resolution have made a habit of buying up insurance companies.
Resolution also bought AXA’s UK life insurance arm this year, and is buying Bupa via Friends Provident Life and Pensions Limited, which it bought in 2009. The deal is funded by surplus cash from Friends Provident’s life operating business.
Bupa will be run along their current lines for around a year or so before Friends Provident swallow up their branding into their own, existing group income protection business.
Michael Biggs, chairman of Resolution, said the deal was consistent with Resolution’s strategy. ‘Both the terms of the transaction and the synergies to be gained from it will create value for shareholders. It will also enhance Friends’ proposition as a focused and disciplined writer of new business in key product areas.’
Trevor Matthews, the chief executive of Friends Provident, said: ‘This acquisition will strengthen our group risk business product range and improve the profitability of our individual protection business. The BHA management team led by Steve Payne will bring additional highly valued expertise to the Friends team.’
All good for keeping the printing presses running, but not great for your postman.
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