Hong Kong-based insurance company AIA Group Ltd. has completed its acquisition of MediCard Philippines Inc. which provides insurance and healthcare services to nearly a million Filipinos.
MediCard has over 920,000 members and has a medical service network of over 1,000 partner hospitals and clinics. It also has 26 MediCard-owned clinics located in key cities nationwide.
AIA said Nicky Montoya will continue to lead MediCard as Chief Executive Officer following the transaction, which is subject to regulatory approvals and other customary closing conditions.
“This is the right time for AIA to play a leading role in making health insurance and healthcare more accessible, more affordable and more effective in the Philippines, helping many more people live healthier, longer, better lives and delivering long-term sustainable value creation for our shareholders,” Leo Grepin, AIA Group’s Regional Chief Executive and Chief Strategy Officer, said.
AIA said the acquisition will accelerate AIA’s Integrated Health Strategy in the Philippines by bringing assets and capabilities across healthcare provision, administration and management.
MediCard, AIA said, will bring in new products, customer segments and distribution capabilities to AIA Philippines. It will also open new opportunities to deliver personalized health insurance coverage to a large and fast-growing mass and emerging affluent segment.
Powered by Amplify Health, AIA’s new Health InsurTech business, customers will benefit from personalized health insurance that is fully integrated with superior end-to-end healthcare services, including telemedicine, personalized disease management programs and holistic case management and support.
“MediCard’s journey started in 1987 when our father, Dr. Nicanor Montoya, established the company with his fellow doctors with the aim of providing affordable and quality medical services coverage to more Filipinos,” Nicky Montoya, MediCard’s President and Chief Executive Officer, said.
“This transformational transaction not only continues the founders’ legacy but definitely takes MediCard to the next level. AIA is globally recognized as the leading pan-Asian life and health insurer with a commitment to customer focus and an outstanding track record of delivering value creation for shareholders,” he added. Reports from Bloomberg News earlier stated that AIA and MediCard are finalizing the details of a transaction and could reach an agreement in the coming weeks after the Hong Kong-based insurance company outbid other insurers and investment funds.
A deal could value the Philippine company at more than $350 million, according to sources who asked not to be identified because the matter is private (Full story here: https://businessmirror.com.ph/2022/09/22/insurer-giant-aia-in-talks-to-buy-medicard-sources-say/).
AIA is considered the largest independent publicly listed pan-Asian life insurance group which is present in 18 markets – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR , Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR , and a 49 per cent joint venture in India.