1.1 What is the deal we’re agreeing with Aetna International? Aetna International has taken the decision to focus on its core business and home market in the USA going forward and for this reason it will not be renewing its non-USA international health insurance policies in 2022. The deal between Aetna International and Allianz Partners is a preferred partner deal whereby Aetna International will work very closely with us to migrate their non-US policy clients over to Allianz Partners. Think of it as switch business which is fully supported and assisted by the incumbent insurer. It is not a merger or an acquisition. 1.2 What kind of agreement is this? In legal terms it’s an exclusive introduction rights agreement. 1.3 Has the deal been completed? No. While agreement has been reached on the core elements of the commercial deal, it is still subject to some important legal and regulatory requirements in relation to employment law. We hope to get the green light to proceed within the coming 3-5 weeks. We will keep you updated as things progress. 1.4 Why did Aetna International choose Allianz Partners as its preferred provider to move this business to? Aetna International felt strongly about introducing their clients to a reliable and established partner that can offer a very high level of cover and service internationally. A partner that can offer a proposition which matches or offers more to clients than the cover they currently have with Aetna International. Aetna International chose Allianz Partners as the best choice based on that criteria. 1.5 Will there be any benefit to our organisation or clients? Yes. As an insurer partner, we'll have a bigger footprint in the Middle East and in Asia Pacific in particular, so we’ll be able to offer even stronger regional support to clients. We’ll also have much stronger segment expertise and product offerings for SME clients as we’ll closely replicate Aetna International’s flexible and competitive Summit product. This will be alongside the service strengths, cost containment and stable pricing that you're used to. 1.6 I see news about the acquisition of Aetna Thailand, is that part of this deal? It is connected yes, but it’s a separate agreement with another Allianz entity. This is part of Aetna International’s wind down of its non-Americas insurance business. The agreement with Allianz Partners relates to all of Aetna International’s markets with the exception of the Americas, Thailand and India. The Aetna International Americas business will become part of Aetna, a CVS Health company. In Thailand, Allianz Ayudhya has agreed to acquire 100% of Aetna International’s shareholdings and Thailand business operations. This is primarily a domestic health insurance business. Aetna International is still exploring options for its Indian Health Organisation business. 1.7 What is the regulatory environment to get the business transferred from Aetna International? Will you be using Aetna International’s existing fronting arrangements and have more capabilities to write onshore business in the future? Continuity is key to our ambitions in making the transition from Aetna International to Allianz as simple as possible. Where Aetna International has a fronting solution in a country that Allianz doesn’t, we’ll adopt that fronter. We’ll look to start these discussions with the fronters as early as we can in the process and we have a team set up to onboard them within an ambitious timeline. We’ll share more details per country when we are able to. The overriding principle is to adopt the additional fronters. So, yes, absolutely we’ll be extending the amount of onshore solutions. First conversation and focus will be what is needed for migration. We can then look to see how we extend the opportunity for the partnership model as well.
1.8 Which Allianz entity is planning to write the business in the different regions? As a general rule the following Allianz entities will be used to write any new business previously underwritten by the existing Aetna entities:
Aetna Transferor Entity
Allianz Transferee Entity
Aetna Health Insurance Company of Europe (DAC)(AHICE)
AWP Health & Life SA (and its Irish Branch)
Aetna Insurance Company Limited
AWP P&C SA (UK Branch)
Aetna Insurance Company Limited (Singapore branch) (AICL SB)
Allianz Global Corporate & Specialty SE Singapore Branch
Aetna Insurance (Hong Kong) Limited (AIHK)
Allianz Global Corporate & Specialty SE Hong Kong Branch
Aetna Life & Casualty (Bermuda) Ltd (AL&C)
Allianz entity(ies) will be a combination of the above Allianz entities and the Allianz fronting partners depending on where and how the AL&C business is written
Please note each policy will be assessed on a case by case basis in line with licensing and local regulatory considerations to determine the correct Allianz underwriting entity or license.
1.9 What will happen to group leavers who need to purchase an individual policy when their employer has migrated to Allianz Partners?Allianz Partners will honour the commitment made by Aetna International on their approach to group leavers. After a 12 months period with Allianz Partners, subject to terms and conditions, migrating clients will be eligible for the Allianz partners group leaver program. For more details click here. There are a number of countries which are excluded such as USA, Australia, Japan, Brazil, Canada. Please contact us to get the full list of exclusions.