The parent-firm of AIA Philippines announced the acquisition of leading healthcare insurance provider MediCard Philippines, Inc.
In an undisclosed amount, AIA Group Ltd. said the Hong Kong-based insurance company agreed to fully acquire the shares in one of the major health maintenance organizations (HMO) in the country, MediCard.
Leo Grepin, AIA Group regional chief executive and chief strategy officer, said MediCard acquisition will help accelerate AIA’s integrated health strategy in the Philippines.
Subject to regulatory approvals and other customary closing conditions, the insurance firm said that MediCard will be part of AIA Philippines, formerly Philippines Life and General Insurance Co., Inc., or Philam Life.
Bloomberg had reported that the acquisition could value MediCard at more than $350 million, or P20.65 billion.
“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... and delivering long-term sustainable value creation for our shareholders,” Grepin said in a statement.
Nicky Montoya, son of MediCard founder Nicanor Montoya, will continue to lead the HMO company as the chief executive officer (CEO) following the transaction, AIA said.
“We are confident that with the support of AIA’s unrivalled experience, scale, reach and unique capabilities, MediCard will create an even better experience for our customers,” Montoya said.
“This transformational transaction not only continues the founders’ legacy but definitely takes MediCard to the next level,” he added.
Currently, MediCard has more than 920,000 members across corporate and individual plans. It also has over 1,000 partner hospitals and clinics, and 26 company-owned clinics across the country.
“This is an exciting development for AIA Philippines, and further strengthens our position in the health and wellness space,” Kelvin Ang, AIA Philippines CEO said
“The acquisition demonstrates AIA’s commitment to support our business in the Philippines, to better serve our customers, and bring to life our purpose of helping more Filipinos live Healthier, Longer, Better Lives,” he concluded.