South-African headquartered Discovery has acquired the remaining 25% stake in the holding company that owns PruHealth and PruProtect.

The deal has been done for £155 million with immediate effect, with Discovery valuing the business at approximately £620 million.

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As part of the acquisition, the former businesses of PruHealth and PruProtect will be rebranded and consolidated under a single insurance brand, "Vitality", with the business offering two insurance lines, "VitalityHealth" in the private medical insurance market; and "VitalityLife" in the long-term protection market.

The joint venture was initially established as an equally-owned venture between Discovery and Prudential in the private medical insurance market, and subsequently expanded to offer long-term protection products.

The joint venture underwent a shareholding change in 2010, at which time Discovery increased its shareholding in the joint venture to 75%.

In aggregate, Discovery said the joint venture attracts annual premiums of approximately £480m, with annualised new business in excess of £110m.

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Adrian Gore, CEO of Discovery, commented: "We are tremendously excited about this major strategic milestone for Discovery. Taking full ownership of our UK operations signals the significance
of the UK to Discovery and is key to our strategy to replicate Discovery’s shared-value insurance model in this market."

Discovery will work closely with Prudential to ensure a smooth transition, and Prudential will continue to support the business for a transitional period.