AIA Group takes over MediCard

MANILA, Philippines — Global insurance giant, AIA Group Ltd. announced yesterday that it has agreed to acquire 100 percent of MediCard Philippines Inc., a leading health maintenance organization in the country.

Dr. Nicky Montoya will continue to lead MediCard as the CEO following the transaction, which is subject to regulatory approvals and other customary closing conditions.

The acquisition accelerates AIA’s Integrated Health Strategy in the Philippines, the insurance company said yesterday.

“MediCard is a leading health maintenance organization 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, healthcare assets and capabilities that will help accelerate AIA’s Integrated Health Strategy in the Philippines,” said Leo Grepin, AIA Group’s regional CEO and chief strategy officer.

“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,” he said.

At present, MediCard has an extensive medical service network of over 1,000 partner hospitals and clinics, and 26 high-quality MediCard-owned clinics located in key cities across the Philippines that offer a broad suite of services across primary care, diagnostics, laboratory tests and minor surgeries.

AIA Philippines, formerly AIA Philam Life, is a premier life insurance company in the country.

The Philippines is one of Asia’s fastest growing healthcare markets. High out-of-pocket expenditure and significant unmet service demand underpin the growing need for health insurance and more effective healthcare.

With a focus on the large and fast-growing mass and emerging affluent segments, MediCard brings new products, customer segments and distribution capabilities to AIA Philippines and opens up significant new opportunities to deliver more personalized health insurance by deepening and broadening coverage across the combined customer base, the company said.

“This is an exciting development for AIA Philippines, and further strengthens our position in the health and wellness space,” said Kelvin Ang, AIA Philippines CEO.

With operating history of over 30 years, MediCard has more than 920,000 members as of May 2022, a broad service and nationwide provider network including 523 hospitals and 482 independent partner clinics, as well as 133 managed corporate on-site clinics and 26 company-owned clinics, more than 23,000 doctors and 817 dentists.

It provides fixed fee prepaid health plans and third-party administration services to corporates, SMEs and individuals distributed predominantly through its own in-house distribution team and exclusive agents, as well as third party broker channels.

In 2021, MediCard generated revenues of $182 million.