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APRIL Group Announces Acquisition Of GlobalHealth Asia

International private medical insurance industry merger and acquisition mania continues in 2016 as APRIL group announce the acquisition of GlobalHealth Asia, an established international private medical insurance provider based in Hong Kong with operations in Singapore, Vietnam and Shanghai, plus local underwriting partners across south east Asia. 

Established in 1997 in Hong Kong, GlobalHealth has 60 staff members and a turnover of around six million euros. GlobalHealth provides a full range of international group and individual health insurance services, including underwriting, policy administration and claims adjudication.

The new purchase will enable APRIL to extend its operations in Asia beyond its current activities in Thailand, China and Singapore and significantly strengthens its market share in the region

APRIL Group, which was founded in France more than 35 years ago, is an internationally known and respected insurance services group with operations in 37 different countries, looking after close to six million policyholders worldwide, consisting of some 86 different nationalities located in more than 120 countries. 

With operations on every continent, APRIL group is now ideally positioned to meet the increasingly complex requirements of individual and group clients, regardless of their country of origin, by offering solutions which are tailored to their local environment.

Emmanuel Morandini, Deputy CEO of the APRIL group comments, "We would like to welcome the GlobalHealth teams to the APRIL group. This acquisition will strengthen our areas of expertise and extends our operations in Asia and is in line with our stated objective to become a leading IMPI and assistance player outside France."

In October 2015, APRIL Group successfully rebranded and relaunched UK based MediCare International as APRIL International UK, a specialist designer and distributor of international private medical insurance policies for groups and individuals.

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Aetna To Acquire Humana For $37 Billion

Aetna (NYSE: AET) and Humana Inc. (NYSE: HUM) have announced that they have entered into a definitive agreement under which Aetna will acquire all outstanding shares of Humana for a combination of cash and stock valued at $37 billion or approximately $230 per Humana share based on the closing price of Aetna common shares on July 2, 2015.

The complementary combination brings together Humana’s growing Medicare Advantage business with Aetna’s diversified portfolio and commercial capabilities to create a company serving the most seniors in the Medicare Advantage program and the second-largest managed care company in the United States. The combined entity will help drive better value and higher-quality health care by reducing administrative costs, leveraging best-in-breed practices from the two companies — including Humana’s chronic-care capabilities that measurably improve health outcomes for larger populations — and enabling the company to better compete with more cost effective products.

Under the terms of the agreement, which has been unanimously approved by the board of directors of each company, Humana stockholders will receive $125.00 in cash and 0.8375 Aetna common shares for each Humana share. As a result of the transaction, Aetna’s shareholders would own approximately 74 percent of the combined company and Humana’s shareholders would own approximately 26 percent. Aetna expects to finance the cash portion of the transaction with a combination of cash on hand and by issuing approximately $16 billion of new term loans, debt and commercial paper. Upon closing, which is expected to be in the second half of 2016, the company’s debt-capital ratio is projected to be approximately 46 percent, and management has committed to reducing that ratio below 40 percent over the 24 months following the closing. The transaction is projected to be neutral to Aetna’s 2016 Operating EPS and produce mid-single digit percentage Operating EPS accretion in 2017 and low double-digit percentage Operating EPS accretion in 2018.

The combined company will be well positioned to offer a broad choice of affordable, consumer-centric health care products, helping to constrain cost growth, improve health outcomes, and promote wellness. The combination will provide Aetna with an enhanced ability to work with providers and create value-based payment agreements that result in better care to consumers, and spread cutting-edge clinical practices and quality care.

The combined company would have projected 2015 operating revenue of approximately $115 billion, with approximately 56 percent from government sponsored programs (including Medicare and Medicaid). The combined company will have over 33 million medical members, based on memberships as of March 31, 2015. The combined membership includes Humana’s 3 million TRICARE members, under a program of health care coverage for military families and retirees administered by the U.S. Department of Defense.

After closing Aetna will make Louisville the headquarters for its Medicare, Medicaid and TRICARE businesses, and will maintain a significant corporate presence in Louisville. Founded in Louisville more than 50 years ago, Humana has a long history of contributing to the Louisville community.

“The acquisition of Humana aligns two great companies and will significantly advance our strategy of more effectively serving members in a rapidly changing health care industry,” said Mark T. Bertolini, Aetna chairman and CEO. “This combination will allow us to continue to invest in excellent service for our members and strengthen our partnerships with providers to deliver high quality care at an affordable price. We have great respect for Humana, their talented team, their culture and their strong medical management capabilities. We look forward to working with them following the closing, as we enhance our combined portfolio of innovative health care offerings to provide significant benefits to consumers, employers and providers, and to continue delivering value for our shareholders.”

“Aetna and Humana share a strong commitment to improving the health and well-being of consumers, whatever their needs and wherever they are on their lifelong health journey,” said Bruce D. Broussard, president and CEO of Humana. “Through the use of technology and integrated services to simplify the consumer experience, the combined entity will be even more effective in meeting the health needs of many more people — especially people with chronic conditions, who will benefit from Humana’s home health, pharmacy management, and data analytics programs. The transaction is a testament to the accomplishments of Humana associates and an outstanding outcome for our shareholders, who will receive an immediate premium and the opportunity to participate in the growth potential of the combined organization.”

Shawn M. Guertin, Aetna’s executive vice president and CFO, added, “The complementary nature of our two companies provides us with a significant synergy opportunity, furthering Aetna’s efforts to increase its operating efficiency. We expect synergies from the transaction to be $1.25 billion annually in 2018. These cost efficiencies will support our efforts to drive costs out of the system and offer more affordable products.”

The combination of Aetna and Humana:

  • Builds on each company’s respective efforts to provide innovative, technology-driven products, services and solutions to build healthier populations, promote higher quality health care at lower cost, and offer greater transparency and convenience for consumers.
  • Increases Aetna’s Medicare Advantage membership to 4.4 million and improves Aetna’s ability to serve members and their providers with cutting-edge technology and best practices.
  • Brings together two companies with leading percentages of membership in Medicare plans rated four Stars or higher.
  • Creates a leading health care services and pharmacy benefit franchise, serving members who use over 600 million prescriptions annually.
  • Strengthens care management capabilities by taking the best-of-breed provider solutions, including robust offerings of patient-centered provider services, clinical intelligence, value-based reimbursement models, data integration and analytics solutions from both companies.
  • Brings together two companies with longstanding commitments to promoting wellness, health, and access to high-quality health care for everyone, while supporting the communities in which they serve.

Transaction Details

Following the close of the transaction, Mark Bertolini will serve as Chairman and CEO of the combined company. At the time of the closing, the Aetna Board of Directors will be comprised of twelve current Aetna directors and four Humana directors, for a total of sixteen directors.

The transaction is subject to customary closing conditions, including the approval by Humana stockholders of the merger agreement, the approval by Aetna shareholders of the issuance of shares in the transaction, as well as the expiration of the federal Hart-Scott-Rodino antitrust waiting period and approvals of state departments of insurance and other regulators.

Aetna has received commitments from both Citi and UBS Investment Bank in connection with the financing of the transaction.

Citi and Lazard are acting as financial advisors to Aetna. Davis Polk & Wardwell LLP is acting as legal advisor to Aetna. Goldman Sachs is acting as financial advisor to Humana and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as its legal advisor.

Share Repurchase Program

Prior to closing, Aetna’s ability to repurchase its own shares will be limited. To meet its deleveraging plans, Aetna expects to suspend its share repurchase program for the combined company for approximately 6 months following the closing of the transaction. In addition, Humana will be suspending its share repurchase program.

The proposed transaction does not impact Aetna’s ability and intent to continue quarterly dividend payments, including the $0.25 dividend declared on May 15, 2015, payable on July 31, 2015 to shareholders of record at the close of business on July 16, 2015. Under the merger agreement Aetna has agreed that its quarterly dividend will not exceed $0.25 per share prior to closing. Declaration and payment of future dividends is at the discretion of Aetna’s board of directors and may be adjusted as business needs or market conditions change.

The proposed transaction also does not impact Humana’s ability and intent to continue quarterly dividend payments prior to the closing of the transaction, including the cash dividend of $0.29 per share payable on July 31, 2015 to stockholders of record on June 30, 2015. Under the merger agreement Humana has agreed that its quarterly dividend will not exceed $0.29 per share prior to closing. Declaration and payment of future dividends is at the discretion of Humana’s board of directors and may be adjusted as business needs or market conditions change.

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AXA To Acquire Simplyhealth’s Private Medical Insurance Business

AXA have announced that it has reached an agreement with Simplyhealth to acquire its private medical insurance (PMI) business, subject to approval by the appropriate authorities.

 

Simplyhealth has been operating in the UK PMI market for 13 years.  Employing around 400 people in Bristol, it provides health cover for over 200,000 people, individually and through its SME and corporate customers.

The acquisition will further strengthen AXA’s presence in the UK healthcare market and clearly evidences its continuing commitment to being the preferred provider in each of its key strategic business areas.  

Keith Gibbs, Chief Executive, AXA PPP healthcare said, “With its well balanced, stable book of business, Simplyhealth’s PMI business will be an excellent addition to AXA PPP healthcare and this agreement has presented a rare opportunity to acquire complementary business in the UK.  Both companies share a commitment to offering outstanding customer service, supporting their local communities and being an employer of choice. We look forward to working with Simplyhealth and its intermediary partners to ensure a smooth transition providing excellent service and continuing cover for all individual and business customers.”

Romana Abdin, Chief Executive of Simplyhealth said, “This is a deal that makes sense for both sides. The sale of our PMI business will accelerate Simplyhealth’s strategy of investing in everyday healthcare, addressing the everyday conditions that stop people from making the most of life.  AXA PPP healthcare has a long-term commitment to the PMI market and this sees them acquiring a business with well-aligned values and great customer service standards. We are delighted to have found a good home for our customers and people in AXA PPP healthcare.”

Under the terms of the agreement, nearly all of Simplyhealth’s 390 Bristol employees will transfer to AXA PPP healthcare under a TUPE arrangement, in addition to a small number of Simplyhealth employees based at other Simplyhealth locations in the UK.  The PMI business will continue to operate from its Bristol premises, which AXA PPP healthcare is acquiring as part of the transaction.

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Healix Acquires Capita Global Assistance

Healix International, a global leader in international medical, security and travel assistance services has announced its intention to acquire Capita Global Assistance.

Capita Global Assistance provides worldwide medical and travel assistance to business and leisure travellers for its impressive portfolio of clients.

Scott Sunderman, Group CEO of Healix International explained, “The acquisition is a natural fit for Healix as it builds upon our existing strengths in the global travel risk management market and supports our ambitious growth plans.

“We pride ourselves on service excellence and the high quality of medical care provided by a team of critical care nurses, doctors and specialist consultants. All are highly experienced in international healthcare delivery and aviation medicine and are backed up globally by our extensive, independent network of primary and secondary healthcare facilities.

“The expertise and dedication of our staff have been key to Healix’s success and we look forward to welcoming employees from Capita Global Assistance to our skilled team and enrolling them in the Healix family.”

Scott Sunderman remarked, “We have the infrastructure in place to successfully integrate this business with exceptional staff, bespoke systems, a highly valued global network providing on the ground support and an enviable track record of service excellence with our existing client base of multinational corporations, insurers, government departments and NGO’s.

“The acquisition of Capita Global Assistance is a feather in our cap and a boost to our growth plans and we are looking forward to welcoming new staff and clients to the Healix experience.”

About Healix International

Healix International is a global leader in international medical, security and travel assistance services.  Working on behalf of multinational corporations, governments, NGO’s and insurers, we are relied upon to look after the welfare of millions of expatriates, business travellers and local nationals living and working in every country of the world, 24 hours a day.

Many of these people reside in the most remote, challenging and hostile of environments.  Last year, we responded to over 450,000 requests for medical assistance globally, managed over 35,000 acute in-patient cases in over 160 countries, and conducted over 2,200 aero-medical evacuations from over 110 countries.

To find out more about Healix International visit their micro website on iPMI Magazine, click here now.

 

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AIG Completes Acquisition of Laya Healthcare

American International Group, Inc. (NYSE:AIG) today announced the completion of its acquisition of Laya Healthcare, Ireland’s second largest health insurance provider. AIG’s agreement to acquire the company was announced in January 2015.

Laya Healthcare serves 24% of the Irish private health insurance market. In addition, the company offers life, dental, and travel insurance, as well as health and wellness coverage.

Laya Healthcare will become part of AIG’s Health business, which is focused on offering creative solutions to AIG’s customers and partners in a rapidly changing global healthcare environment.

“Expansion of our Health business is critical to AIG’s Consumer Insurance strategy of meeting the broad insurance needs of consumers in markets around the globe,” said Kevin Hogan, AIG’s Chief Executive Officer of Consumer Insurance. “We look forward to working with Laya Healthcare’s experienced management team and building on and learning from its success in the healthcare space.”

AIG has been a part of Ireland’s business community for 40 years. It provides auto, home, personal accident, and travel insurance to the Irish market, as well as commercial insurance products. AIG also has a significant IT and asset management presence in the country, supporting its European and global operations.

American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

AIG Completes Acquisition of Laya Healthcare

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State Bank And Trust Company Creates Insurance Division With Acquisition

State Bank and Trust Company, a wholly-owned subsidiary of State Bank Financial Corporation (Nasdaq:STBZ), announced that it has launched an insurance division to offer State Bank customers a full range of personal and commercial insurance products. State Bank enters the insurance business through the acquisition of substantially all of the assets of Boyett Agency, LLC, a privately owned, 61-year-old independent insurance agency based in Dalton, Georgia. The terms of the transaction were not disclosed.

"This acquisition delivers more than 40 top-rated carrier relationships to State Bank, providing the bank a solid opportunity to build deeper client relationships and continue to diversify the bank's income stream," said State Bank and Trust CEO Tom Wiley. "There is a natural synergy with our growing homebuilder finance and mortgage lending groups, where the bank will be equipped to offer a full suite of insurance products with greater convenience, value and service."

The addition of Boyett Agency's assets is not expected to have a material impact on State Bank's noninterest income in the near future.

"We look forward to leveraging the agency's carrier relationships by providing our significant customer base a full line of insurance solutions," Wiley added.

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Fairfax To Acquire Brit PLC

Fairfax Financial Holdings Limited ("Fairfax") (TSX:FFH)(TSX:FFH.U) announced that it has reached an agreement with Brit PLC ("Brit" or the "company") to acquire all of the outstanding shares of Brit (the "Brit Shares"). Brit is a market-leading global Lloyd's of London specialty insurer and reinsurer.

The full announcement (the "Announcement") is available for viewing on Fairfax's website at www.fairfax.ca/britoffer

Under the terms of Fairfax's offer for the Brit Shares (the "Offer"), Brit shareholders will be entitled to receive 305 pence in cash per Brit Share (the "Brit Offer Price"), inclusive of any final dividend for the year ended December 31, 2014. Fairfax has received hard irrevocable undertakings to accept the Offer at the Brit Offer Price from entities managed by Apollo and CVC in respect of, in the aggregate, a total of approximately 294 million Brit Shares representing approximately 73% of Brit's issued share capital. These entities have undertaken to accept the Offer following the posting of the Offer document. The Brit Offer Price represents a premium of 11.2% to the closing price of 274.2 pence per Brit Share on February 16, 2015, being the last full business day prior to this announcement. The aggregate purchase price payable by Fairfax for the Offer is approximately US$1.88 billion.

On February 12, 2015, Fairfax announced 2014 earnings of approximately US$1.6 billion. Excluding the final dividend expected to be declared by the board of directors of Brit for the year ended December 31, 2014 in an amount of 25 pence per Brit Share, Fairfax's purchase price of 280 pence per Brit Share is less than ten times the company's earnings based on the company's annualized net earnings for the six months ended June 30, 2014. The acquisition is accretive to Fairfax on several metrics including gross revenue per share and investments per share. Fairfax has built a strong relationship with the Brit team and an understanding of their business and operations since the acquisition of Brit's runoff business in June, 2012.

"We welcome Mark Cloutier and his market leading specialty insurance and reinsurance team at Brit to our expanding global specialty platform," said Prem Watsa, Chairman and CEO of Fairfax. "Brit has an outstanding track record over the last ten years and will continue to operate on a decentralized basis once owned by Fairfax. With the acquisition of Brit, Fairfax will have a significant top five position at Lloyds of London. We look forward to working with Mark and the entire Brit team to further develop their business over the longer-term."

Brit's position as a market-leading global specialty insurer and reinsurer, its major presence in Lloyd's and its disciplined approach to underwriting make it a natural candidate to join Fairfax's expanding worldwide specialty operations. Brit's growing US and international reach are highly complementary to Fairfax's existing worldwide operations and the acquisition further diversifies Fairfax's group risk portfolio.

In addition, Brit will be able to leverage Fairfax's expertise in the US and international insurance and reinsurance markets, thus enhancing Brit's global product offering and providing it with expanded underwriting opportunities and support. The Offer is subject to customary closing conditions, including customary competition and merger conditions, and the approval of the Prudential Regulation Authority in the UK, Lloyd's of London and the Financial Services Commission of Gibraltar. It is intended that the transaction be effected by way of takeover offer under section 974 of the UK Companies Act 2006 and the Code on Takeovers issued by the UK Takeover Panel. The Offer Document and the Form of Acceptance accompanying the Offer Document will be published (save with the consent of the Panel) within 28 days.

The Offer Document and accompanying Form of Acceptance will be made available on Fairfax's website at www.fairfax.ca/britoffer

Fairfax is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

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