IPMI: UK insurer strengthens its grip on overseas market with new acquisitions
BUPA is to expand its presence in the international private medical insurance (IPMI) market by acquiring two major providers. The British-based insurer has bought AMEDEX Insurance, a US-based provider that serves Latin America and the Caribbean and insures over 100,000 people in 42 countries.
The second acquisition is IHI Danmark, one of the leading players in the IPMI sector, with 240,000 clients in over 190 countries.
The IPMI market is currently going from strength to strength and is predicted to grow substantially in coming years in both the corporate and individual sector.
BUPA's move to secure a stronger grip on the market appears to reflect the importance with which the insurer regards the expatriate sector.
"Over a third of BUPA's business now comes from its international operations. AMEDEX and IHI Danmark will give us a market leading position in the Latin American market and create a strong platform for further growth," said Dean Holden, managing director at BUPA International.
Commenting on the acquisition, Leslie Smith, managing director of Medibroker, said: "This is a strategically brilliant move by BUPA as it locks out 90% of the South American market and will make BUPA International the market leader in the individual sector by a long way."
"It is also important to remem ber that Interglobal, another major player in the expatriate market, is underwritten by IHI Danmark. I would expect to see BUPA purchasing Interglobal within the next two years, as it is a good fit to the business they now have," added Smith.
Although the acquisition will give BUPA a virtual monopoly in the individual IPMI market, with the focus on highly profitable high-net worth clients, the corporate sector looks set to remain fiercely contested with both Allianz Worldwide and Cigna continuing to challenge BUPA for market supremacy.
