FirstAssist restructures to focus on core markets

FirstAssist, the health and wellbeing, speciality insurance and legal expenses insurance provider, is restructuring its business to provide even greater focus on its core expertise.

Following the sale of its Private Medical Insurance business in 2005, the Group has undergone a significant change programme. This has led to a realignment of its strategy in order to fully maximise the opportunities in the different markets in which it operates.

With a clear focus on delivering the most efficient and best service for all of its customers and, as a consequence, delivering growth and superior returns to its shareholders, three new independent businesses have been created and will be fully operational from 1st January 2007.

FirstAssist Insurance Services Limited will provide and distribute a range of health related insurance products (Personal Accident, Hospital Cash plans, Creditor and Travel policies) to its customers and customers of banks, building societies and affinity groups. It will also provide Finance, Actuarial, IT, HR and Compliance resources to its subsidiary company, FirstAssist Legal Expenses Insurance Limited.

FirstAssist Legal Expenses Insurance Limited, which will encompass the Before and After the Event legal expenses businesses and will be an FSA Appointed Representative of FirstAssist Insurance Services Limited.

FirstAssist Services Limited, which will continue to deliver a range of health and wellbeing solutions including Employee Assistance Programmes, Sickness Absence Management, Rehabilitation and Legal Advice and Employment Services as well as International Medical Assistance to SMEís and Corporates, reducing employee risk and enhancing business productivity.

ìSince the Management Buy Out in April 2003, FirstAssist has demonstrated its ability to change as markets have developedî, confirmed Tim Ablett. ìEighteen months ago we embarked on a change programme to unleash the potential of FirstAssist. The result is that we have transformed ourselves from a division of a major corporate into three focused, flexible and fast-reacting medium-sized businesses each positioned for profitable growth. This will ensure that we are able to provide our customers with great, cost-effective service and genuine commercial advantage in each market.

ìWith greater focus, increased revenues, reduced cost of doing business and more empowered and motivated workforces, each business will have an even better understanding of market needs and will be able to provide the right expertise, knowledge and resources to anticipate and meet customer expectations.î

The Groupís private equity investors (Barclays Private Equity) remain fully supportive of each of the businesses, and Great Lakes UK and Groupama will continue to provide the insurance capacity and underwriting capability as required.

Each company will continue to utilise the FirstAssist brand, but will operate completely independently of each other or any Group structure, giving them the freedom to concentrate on their individual strengths, operating as true entrepreneurial businesses. As such, each will have its own business plan enabling it to operate independently.

As a consequence of the creation of these new independent and separately owned businesses, the FirstAssist Group will be disbanded on 31st December 2006. As a result there will be no Group Board and Tim Ablett will step down as Group Chief Executive but will remain involved in each of the trading companies as a Non Executive Director.

ìThis is an extremely exciting timeî, concluded Tim Ablett. ìBarclays Private Equity, the majority shareholder, is fully supporting this restructuring, recognising the importance of giving each area of the business the freedom to grow and develop without being restricted by centralised costs or resources.

ìI believe that from 1st January 2007 each business will be even stronger in each of its markets, delivering high quality services to our customers and I look forward to taking up my new role as a Non Executive Director in each business.î