Summary

• Demand for private health insurance in the UK saw a surge during the pandemic because of the long waiting period at government health provider NHS.
• Private health insurance provides faster access to treatment compared to NHS with the choice of consultant and other benefits.

Health Insurance is one of the most crucial insurance policies which the individual should purchase for self and family well-being. In the United Kingdom, healthcare services for all people are provided by the National Health Service (NHS).

However, NHS healthcare has a long waiting period, and the individual often has to wait for several weeks or months before actual treatment could begin, and during the Covid-19 pandemic government services have come under tremendous pressure and tested to their limit, so owning private health insurance is now being considered by many.

During the pandemic, people willing to take private health insurance saw a rise. According to the survey, around 29% of people purchased private health insurance due to concern regarding the NHS waiting period. Private insurance provides faster access to treatment, choice of consultant, and other perks and benefits. According to the UK Insurance Consumer Survey, the number of people taking private health insurance is expected to surge in the UK, as the expected waiting period of NHS is set to rise further because of several backlog cases.

Source: Copyright © 2021 Kalkine Media

Let us explore some of the private health insurance stocks trading on the FTSE:

Aviva plc (LON: AV.)

FTSE 100 listed company provides various insurance, retirement, and savings products. The company serves close to 33 million customers across 16 countries. In the United Kingdom, Aviva has over 10% market share in health and general insurance. The company also provides life insurance and pension products.

Recently, Aviva Plc along with other top insurance companies launched an alliance, Net-Zero Insurance Alliance (NZIA), the focus of group is to shift the underwriting portfolio of insurance companies and invest towards net-zero carbon emission companies and stop investing in fossil fuel projects. The underwriting criteria will be set based on which insurance companies will be investing in most carbon-intensive companies and technology based solutions will be provided for low emission.

Share of Aviva Plc trade at GBX 399.4, down by 1.38% on 12 July at 09.16 GMT+1, with a market cap of £15.91 billion.

Prudential Plc (LON: PRU)

The company provides life and health insurance products, and asset management solutions. The company serves close to 20 million customers worldwide. The company’s stock is constituent of FTSE 100 and is also listed on New York Stock Exchange.

Recently the company informed that the demerger of its US business, Jackson National Life will be completed in the second half of 2021 after which Jackson business will be a separately listed entity. The company has received Insurance regulatory approvals from the states of Michigan and New York for demerger.

The Prudential Plc shares trade at GBX 1357, down by 1.67% on 12 July at 09.09 GMT+1, with a market cap of £36.06 billion.

Legal & General Group Plc (LON: LGEN)

The multinational financial service company has assets management and insurance service business. The company provides critical illness cover and life insurance and pension schemes products.

The company reported an overall operating profit of £2,218 million with three business verticals delivering positive growth in the 2020 result. The Insurance segment saw annual premiums up by 10% to £372 million but operating profit was down by 40% to £189 million mostly due to an increase in the reserve for potential future Covid-19 related claims.

The Legal & General Group shares trade at GBX 263.10, down by 1.02% on 12 July at 09.11 GMT+1 with a market cap of £15.76 billion.

Saga Plc (LON:SAGA)

The UK-based company serves close to 2.7 million customers and focus on insurance products for those aged 50 and above, providing early diagnosis and timely treatment. Besides insurance, the company also provides tours and travel packages, and personal finance products.

Saga Plc has recently launched a £250 million bond offer as it looks to strengthen its balance sheet. The company said that the new issue would improve liquidity, extend the debt maturities, provide financial flexibility and provide headroom against covenants.

Share of Saga Plc trade at GBX 368, down by 2.02% on 12 July at 09.14 GMT+1, with a market cap of £516.98 million.