AIA to take over Medicard

Multinational insurance and finance corporation AIA Group Ltd. announced on Wednesday it has acquired health maintenance organization (HMO) MediCard, strengthening its presence in the country’s health insurance and health-care services.

AIA said it has agreed to acquire 100 percent of the shares in MediCard Philippines Inc., a transaction which is still subject to regulatory approvals and other closing measures.

“MediCard is a leading health maintenance organization (HMO) in the Philippines with an established track record of high-quality services and strong brand recognition among customers and providers. With a focus on comprehensive, affordable and quality healthcare, MediCard brings new customer segments, health-care assets and capabilities that will help accelerate AIA’s integrated health strategy in the Philippines,” said Leo Grepin, AIA Group’s regional chief executive and chief strategy officer.

MediCard’s president and CEO, Nicanor Montoya, will continue to lead the HMO company following the acquisition.

The HMO currently has more than 920,000 members across corporate and individual plans, according to AIA.

Highlighting the growing market demand in the country for health insurance and effective health care, AIA said the Philippines is one of Asia’s fastest growing health-care markets, with high out-of-pocket expenditure and a significant unmet service demand.

It added that the acquisition of Medicard would bring new products, customer segments and distribution capabilities to its local unit, AIA Philippines.

‘Personalized’ proposition

The acquisition also opens up significant new opportunities to deliver more personalized health insurance by deepening and broadening their coverage across both parties’ customer base.

For its part, MediCard said the “transformational” transaction would continue the legacy of its founder, Montoya, who had established it back in 1987 with other doctors to provide affordable and quality medical services coverage in the Philippines.

“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,” Montoya said in a statement.

Montoya expressed confidence that AIA’s experience, scale and reach would create a better experience for customers through broader and more efficient services in the future.