Legal & General has sold its healthcare business to Axa due to declining sales despite relaunching its proposition six months ago.
L&G has been in the private medical insurance market for over a decade but says it will close to new PMI business at the end of the month.
A statement from Axa says: “We can confirm that Legal & General is in the process of withdrawing from the medical insurance market and that we have entered into an agreement with Legal & General to offer its customers an opportunity to join AXA PPP healthcare when their Legal & General medical insurance policies come up for renewal.
“This will, in the vast majority of cases, enable these policyholders to be covered on an AXA PPP healthcare plan with comparable benefits to those of their Legal & General plan. In cases where this is not possible, customers will be offered the nearest equivalent AXA PPP healthcare plan. In all cases this will happen with continuation of their existing personal underwriting terms.”
Axa says it will not be asking Legal & General customers to provide it with new medical history information or to be newly underwritten.
L&G says it will be contacting intermediaries whose clients are affected by the changes to inform them of how customers can maintain their cover.
AXA PPP healthcare chief executive officer Keith Gibbs says: “We are pleased that we have reached this agreement with Legal & General and we look forward to welcoming its customers to AXA PPP healthcare.
“We are confident that they will be pleased with the quality of our cover and service.”
Sesame protection research manager Dale Tranter says: “Given last year’s product revamp the timing is strategically mystifying from L&G’s viewpoint, so they must have received a very good offer.”