Standard Life sells healthcare division to Discovery Holdings

Standard Life is pulling out of private medical insurance after agreeing a £138 million deal to sell its Healthcare arm.

South Africa's Discovery Holdings, which sells health and life insurance products in Britain through its PruHealth and PruProtect joint venture with Prudential, is to take on the business subject to regulatory approval.

Standard Life Healthcare is the fourth largest provider of private medical insurance in the UK with a market share of 8%, but the firm said the division was not core as it looks to focus on the long-term savings and investments market.

The business has 490,000 customers and employs 562 staff in Bournemouth and Stockport.

Discovery is listed on the Johannesburg stock exchange with a market value of £1.9 billion. Adrian Gore, its, said: "The assets of Standard Life Healthcare and PruHealth are highly complementary and we believe that the combined business will be well-positioned for future growth."