Healthcare provider Simplyhealth has reached an agreement to purchase the UK healthcare business of Groupama Insurances, subject to the required regulatory approvals.
Groupama Healthcare will be rebranded to Simplyhealth following completion of the necessary legal business transfer. It is anticipated this will take between three and six months.
Des Benjamin, chief executive officer at Simplyhealth, said: “For the past ten years, Simplyhealth has been looking to add more value and choice to employers through growing a diverse range of products and services.
“An essential element of this strategy has been achieved through mergers and acquisitions with health providers that share similar values to us.
“By acquiring Groupama Healthcare, we have the opportunity to build greater presence in the small-to-medium business sector and grow market share.”
Francois-Xavier Boisseau, chief executive officer at Groupama Insurances, added: “Over the last five years, Groupama Healthcare has made significant progress in building a private medical insurance business that delivers market-leading customer service, and enjoys the support of brokers and insurers alike.
“However, despite our best efforts we have been unable to achieve the critical mass required to ensure our business consistently delivers the levels of profitability necessary to ensure its long-term success.
“We concluded it would be beneficial to identify a new owner with the scale and resources necessary to offer the support required to build on the progress we have made. Simplyhealth shares our mutual values and our strong focus on the customer.
“We believe [it] will provide an excellent new home for our policyholders and for the staff at Groupama Healthcare.”
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