Prudential expresses interest to takeover IAA health business
Apr 19, 2021
Mariam Nalunkuuma, head of communications at Insurance Regulatory Authority (IRA) confirmed the regulator is aware of the proposed acquisition of IAA by Prudential.
Prudential expresses interest to takeover IAA health business
Prudential Assurance Uganda has expressed interest to acquire the medical insurance policies of International Air Ambulance (IAA), the New Vision has learned.
Mariam Nalunkuuma, head of communications at Insurance Regulatory Authority (IRA) confirmed the regulator is aware of the proposed acquisition of IAA by Prudential.
“Prudential wants to take over the medical portfolio of IAA. We have received that notification and the regulator is reviewing the documents,” Nalunkuuma said.
It’s not yet clear why IAA is selling off its health care business. IAA Healthcare was initiated in June 2001 and has since established itself as the leading HMO (Health Maintenance Organization) that provides comprehensive health insurance plans to its customers.
Of the five HMO licensed by IRA, IAA recorded the largest portfolio as at end of quarter four at sh31.7bn. It was closely followed by AAR Health Services (U) Limited at sh30.5bn.
IAA clients have over 102 affiliate clinics countrywide where they can easily access health care services. It has about 500 corporate clients with a total of over 60,000 lives insured with the firm.
IAA Healthcare is part of the International Medical Group that includes International Hospital Kampala (IHK), International Medical Centre (IMC), IMG Pharmaceuticals (IMGP) and the International Medical Foundation (IMF).
On the other hand, Prudential which ranks number four in the life segment has a portfolio of sh55bn according to IRA data. If the regulator approves the deal, Prudential will have the largest portfolio in the life segment.
This means that should the deal sail through, all policyholders, staff, health service providers, and claimants may be transferred to Prudential.
A source familiar with the deal at Prudential told New Vision discussions are still ongoing pending guidance from the regulator.
“This [acquisition] is like a marriage in a church. Before a couple is pronounced husband and wife, the pastor will ask if there is anybody objecting to the union. So, we shall put out a notice in the newspapers to find out if anybody has an issue,” the source said.
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