Agis Zorgverzekeringen (Health Insurance), Menzis Zorg & Inkomen (Health & Income) and the Delta Lloyd group health insurance companies (Delta Lloyd & OHRA Health) have decided to merge their health insurance activities into a new organisation.
With four million clients and a market share of 25pc, the new combination reckons it will be strongly positioned at the top of the market to offer healthcare insurance at competitive prices. Parties intend to start the integration process in October and complete the process in the course of 2007.
The three companies say the merger is driven by their desire to create a socially committed, competitive, innovative, financially solid and healthy company that is strongly placed in terms of both market position and size; the prospect of improving their management of claims and to realise cost savings, specifically on the purchasing side, and to achieve a more streamlined internal organisation; to establish a health insurer on a national scale by combining the parties’ complementary geographical strengths (Menzis: North and East of the Netherlands; Agis: Randstad conurbation and central regions; OHRA: central regions; Delta Lloyd: Randstad conurbation); and to reinforce the distribution network by using direct, intermediary and bank assurance networks.
Agis initiated the merger talks with Menzis and Delta Lloyd group early 2006 as, according to Agis CEO Eelke van der Veen, the market climate was such that merging the companies’ purchasing organisations was a logical step. “The combination will create a new health insurer that has a leading market position and is able to guarantee all its clients sustainable high-quality and accessible healthcare at competitive prices.”
According to Roger van Boxtel, the current CEO of Menzis, who is expected to chair the new company’s executive board, the market needs a leading player with a strong financial base and the ability to promote both high-quality and efficient healthcare services through an innovative approach. “Clients needing healthcare services need to be able to trust that the services they require will be available. We’ll be seeking to lead the way by ensuring our clients receive the best care available through our innovative approach and clear, client-focused range of products.”
As Niek Hoek, CEO of Delta Lloyd group, explains, the new alliance reflects Delta Lloyd group’s strategy of establishing partnerships in order to consolidate its position as one of the largest parties in the Dutch health insurance market. “We’re joining forces now so as to establish a leading position in the Dutch health insurance market. Combining Delta Lloyd’s three strong brands – Delta Lloyd, OHRA and ABN AMRO Insurance – in the three main distribution channels with those of Agis and Menzis will create a strong and powerful player in Health Insurances.”
Each party in the new organisation will provide two members of the new executive board. Menzis will be represented by Roger van Boxtel as CEO and by board member Ruben Wenselaar. Agis will nominate its executive board members Diana Monissen and Rob Adolfsen, while Martin Duvivier (currently CEO Delta Lloyd & OHRA Health) and Emiel Roozen (currently CFO Delta Lloyd Banking) will represent Delta Lloyd group.
The new organisation’s supervisory board will comprise nine members and will be chaired by Flip Buurmeijer, previously PvdA MP (Labour) and, among other things, been chairman of Lisv (now known as UWV, the Employee Insurances Administration Agency). Agis will be represented by its current CEO Eelke van der Veen and by its supervisory board member Bram Anbeek van der Meijden, while Delta Lloyd group will be represented by its executive board members Niek Hoek and Rob Hillebrand and Menzis will appoint its supervisory board members Barbara Fransen, Willem de Jong, Maritte Doornekamp and Henk van Oene.
The new organisation will have its headquarters at the Agis offices in Amersfoort. Although it will be reducing its total number of locations, it will maintain a clear presence in all its core areas.
Over the next few months, a steering committee, which will include Roger van Boxtel, Eelke van der Veen and Niek Hoek, will discuss how best to combine the parties’ health insurance activities, including the basic health insurance schemes, the various supplementary schemes and the activities relating to the Dutch Exceptional Medical Expenses Act (AWBZ). The Competition Authorities will be asked to approve the planned merger. The parties’ aim is to finalise the transaction by mid-October, by which time the control structure will have been clarified. The new organisation will then be introduced during the course of 2007.
The new organisation will not include the occupational disability insurance and asset management activities, which will be executed by Delta Lloyd group.
The merger’s effect on job numbers has still to be clarified, although the individual companies have all taken steps to reduce their operating costs and improve efficiency. Consequences of the merger for staff are under study and will be announced by the end of the year.
The various appointments and organisational changes referred to above are all subject to consultation with the relevant regulators and consultative bodies.