Insurer acquires stake in VIVAS Group
Aviva's insurance business in Ireland, Hibernian Group, has agreed to acquire 70% of Irish health insurance business VIVAS Group.
The deal will enable Aviva to enter the Irish health insurance market.
Allied Irish Banks will continue to hold the remaining 30% equity in VIVAS, further strengthening AIB and Hibernian’s existing relationship. The value of VIVAS Health’s gross assets at 31 December 2007 was €88.9 million (£65.4 million).
Following the completion of this deal Hibernian’s operations will span general insurance, life and pensions and health insurance. The health insurance products will be distributed through Hibernian and AIB’s distribution channels, and VIVAS Health’s direct and non-direct channels.
VIVAS Health was established in 2004 and has approximately a 5% share of the Irish private medical insurance market.
Stuart Purdy, chief executive of Hibernian Group, said: "This acquisition brings us significant growth potential by combining our distribution reach and brand strength with the innovative and competitive VIVAS Health product range. It will position us as a provider of the full range of life, non-life and healthcare products, strengthening our role as Ireland’s leading multi-line insurance group."
Hibernian is the number one provider of general insurance in Ireland and is a top three provider in the life and pensions market. With approximately 1.2 million customers, Hibernian has been providing insurance products in Ireland for 100 years.
The closing of the transaction, which is subject to regulatory approval, is expected to take place in the first half of 2008.
