Consolidation in the health insurance sector gained pace yesterday with two large deals worth over $16 billion (€13.6 billion) in the US.

Anthem said it was acquiring WellPoint Health Networks in a $14.2 billion cash and share deal while UnitedHealth's will purchase Mid Atlantic Medical Services for $2.85 billion.

Anthem's acquisition will create the US's largest health insurer by membership, overtaking UnitedHealth Group.

Consolidation comes as health insurers seek to cut administrative costs and increase buying power in the face of the rising cost of medical care, and try to drive growth in a maturing market. They also want to broaden geographic coverage to increase their appeal to large companies.