ProtectionNov 14 2014

Discovery rebrands Pru products

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PruHealth will be rebranded as VitalityHealth and PruProtect as VitalityLife after South African insurer Discovery acquired the entire share capital, its chief executive Adrian Gore has announced.

He said advisers did not need to be concerned about operational change, adding: “The operational side of PruHealth and PruProtect will stay the same.

“The same teams will continue to take care of advisers and their clients, who will still be covered in exactly the same way as before.”

He added that any new business with PruProtect will continue to be underwritten by Prudential.

Mr Gore said the objective of the move was “to create a unique protection business responsive to global trends”.

Under the terms of the deal, Discovery, which in 2010 increased its shareholding in the joint venture to 75 per cent, bought the remaining stake for £155m with immediate effect.

By doing so, Discovery has increased its UK client base to 800,000 members and its target is to reach 2m people in the UK by 2020.

Discovery uses a shared-value model, which aims to reduce risk by encouraging positive behaviour among members.

Mr Gore explained: “By reducing risk, it funds the incentives that change behaviour. We call this a shared-value model because it’s a virtuous circle that’s good for the customer, good for business, and for society.”

Adviser View

Tom Binstead, director of employee benefits at Cheltenham-based Bank House Corporate, said: “These two brands were well-known and trusted, so it is a shame to lose them. Clients like a brand they can trust more so than the cost. However, investment into business is welcome.”