Require a private industry to have less margins or no profits, they will seek the path of least resistance.
China Market Presents Chance for Big Insurers, if Strategy, Partnership Are Right | AIS Health
U.S. health insurance carriers deep in the process of preparing for major health reform law changes next year should also be tracking opportunities in emerging overseas markets, notably in China where Cigna Corp. by all accounts is experiencing rapid-fire growth via its partnership with China Merchants Bank. Cigna’s well documented, and much praised, foray into China is not the norm, considering its breakout success since teaming with its bank partner in 2003. But even steady and strategic inroads overseas may be a hedge for U.S. insurers searching for higher-margin businesses, market analysts say.
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For certain, there are more markets in play for U.S. insurers than just China. One recent acquisition, UnitedHealth Group’s purchase of Brazilian insurer Amil Participações S.A. (HPW 10/15/12, p. 1), started to pay dividends in the first quarter of 2013, the first full reporting period that included the new Brazilian acquisition. UnitedHealthcare International had first-quarter revenues of $1.6 billion and counted 4.6 million members, up from 4.4 million members at the end of 2012 (HPW 4/29/13, p. 3). Cigna has also been active in India, and in November 2011 started a joint venture with TTK, an Indian conglomerate
China Market Presents Chance for Big Insurers, if Strategy, Partnership Are Right | AIS Health
U.S. health insurance carriers deep in the process of preparing for major health reform law changes next year should also be tracking opportunities in emerging overseas markets, notably in China where Cigna Corp. by all accounts is experiencing rapid-fire growth via its partnership with China Merchants Bank. Cigna’s well documented, and much praised, foray into China is not the norm, considering its breakout success since teaming with its bank partner in 2003. But even steady and strategic inroads overseas may be a hedge for U.S. insurers searching for higher-margin businesses, market analysts say.
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For certain, there are more markets in play for U.S. insurers than just China. One recent acquisition, UnitedHealth Group’s purchase of Brazilian insurer Amil Participações S.A. (HPW 10/15/12, p. 1), started to pay dividends in the first quarter of 2013, the first full reporting period that included the new Brazilian acquisition. UnitedHealthcare International had first-quarter revenues of $1.6 billion and counted 4.6 million members, up from 4.4 million members at the end of 2012 (HPW 4/29/13, p. 3). Cigna has also been active in India, and in November 2011 started a joint venture with TTK, an Indian conglomerate
