Bupa is to sell its UK protection and risk business, Bupa Health Assurance Ltd (BHA), to Resolution for approximately £165.15m.
The sale, which will see BHA become part of Friends Provident, is subject to regulatory approval. Friends Provident may also introduce Bupa Healthcare to its distribution channel.
Bupa said the decision to sell BHA reflects Bupa's intention to focus on its healthcare businesses.
Dr Natalie-Jane Macdonald, Managing Director, Bupa Health & Wellbeing, the parent company for BHA, said: "Our decision to sell is based on strategic fit. The sale will allow Bupa Individual Protection and Bupa Group Risk to benefit from belonging to a company with a strong focus on both protection and risk. Importantly, this decision also allows Bupa to concentrate on healthcare products and services."
Bupa is in the process of contacting customers and distributors about the proposed sale to ensure a smooth transition through the change in ownership. As part of the agreement, all employees at Bupa Group Risk and Bupa Individual Protection will transfer to Friends Provident.However BHA may trade as a standalone brand for up to a year.
Steve Payne, Managing Director of Bupa Health Assurance, said: "Throughout this process and beyond, we are open to new business, and are focused on delivering excellent customer service."
In addition, Friends Provident and Bupa have agreed to work together to explore ways in which Friends Provident can introduce the Bupa private medical insurance product to its distribution channels and markets and Bupa can introduce the Friends Provident insurance products to its distribution channels and markets.
