Financial Post 1 of 4 Full Screen Autoplay Close Skip Ad × Australian health insurer AGL hits $1 billion milestone in 2018 and beyond View Photos The company is now the world’s biggest insurer with a market capitalization of $2.3 billion.
It is the biggest player in the insurance market in Australia and is the second-largest in the world.
In a deal announced Tuesday, it will take over AGL Group and the healthcare sector in Australia.
Australia’s biggest insurers have announced a merger to become AGL Australia and the Australian Health Services Group.
“We are thrilled to be able to expand our reach into the Australian market,” AGL chairman and CEO Tony Smith said in a statement.
“The acquisition of AGL is a significant achievement for the AGL brand and will help us provide our customers with superior service and value in the future.”
AGL, which has assets of $3.6 trillion, is Australia’s third-largest insurer with about 70 per cent of the Australian population covered by its plans.
Australia has had some of the highest health care spending in the developed world.
It has seen its overall health care expenditure rise since the financial crisis, as well as its share of the population aged 65 and over rise to more than 15 per cent.
AGL has also seen its share price rise significantly since the merger.
Australia is also a member of the European Union, which requires insurers to offer coverage to a certain age group.
The merger is the first of its kind in Australia, as AGL’s global portfolio includes Australia’s largest insurer, AGL-owned Centrica, which owns AGL Medicare and AGL Care.
“Australia’s health and well-being has always been and will always be our No. 1 priority, and this is the start of a truly global effort to make AGL the global health and wellness leader,” Smith said.