Aviva plc ("Aviva") today announces that its insurance business in Ireland, Hibernian Group (“Hibernian”), has agreed to acquire 70% of Irish health insurance business VIVAS Group Ltd (“VIVAS Health”). Allied Irish Banks plc (“AIB”)* will continue to hold the remaining 30% equity, 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#).
- Aviva to enter growing Irish health insurance market through acquisition of VIVAS Health
- Added strength and breadth to its multi-line insurance group in Ireland
- Strong growth potential through multi-channel distribution
Aviva plc ("Aviva") today announces that its insurance business in Ireland, Hibernian Group (“Hibernian”), has agreed to acquire 70% of Irish health insurance business VIVAS Group Ltd (“VIVAS Health”). Allied Irish Banks plc (“AIB”)* will continue to hold the remaining 30% equity, 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. It has built a strong reputation as a dynamic and innovative health insurance provider in the Irish market.
Stuart Purdy, CEO of Hibernian Group, comments: “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.
AIB operates out of over 276 outlets in Ireland. Hibernian currently distributes life and pensions and motor business through AIB; and health insurance distribution will further enhance the relationship.
The closing of the transaction, which is subject to regulatory approval, is expected to take place in the first half of 2008.
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* Allied Irish Banks Plc will continue to hold its 30% equity in VIVAS Health through its subsidiary Allied Irish Banks (Holdings and Investments) Limited
** Unaudited Irish GAAP figures per the draft statutory financial statements as at 31 December 2007
# At a 2007 closing exchange rate of 1.36 Euro/GBP
*** VIVAS Health is a growing business and this figure relates to the end of 2007
Enquiries:
Media
Danielle Anthony, senior group media relations manager +44 (0)20 7662 9511 +44 (0)7800 694052
James Murgatroyd/Ed Simpkins, Finsbury +44 (0)20 7251 3801
Analysts
Charles Barrows, investor relations director +44 (0)20 7662 8115
Jessie Burrows, head of investor relations +44 (0)20 7662 2111
Susie Yeoh, investor relations manager +44 (0)20 7662 2117
Notes to editors:
- Aviva, through Hibernian, will acquire 70% of VIVAS Health from International Investment and Underwriting (IIU) and VIVAS Health’s management and staff.
- Hibernian is one of Ireland's largest and most successful financial organisations with activities spanning general insurance, risk management, pensions, life assurance and personal financial services.
- Hibernian’s full year results for the year ended 31 December 2007 produced an operating profit of €352.9m (2006: €188.9m).
- Aviva is the leading provider of life and pensions to Europe (including the UK) with substantial positions in other markets around the world, making it the world’s fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
- Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion and funds under management of £364 billion at 31 December 2007.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
- A photograph of Stuart Purdy and Oliver Tattan can be downloaded from the Media Centre Image Library.
VIVAS Health
- Private health insurer VIVAS Health was founded in 2004 to address the lack of competition in the Irish market for innovative health insurance products. Quickly growing to take a 5% share of the market, as at end of December 2007, the company established itself the leader in consumer focused health plans.
- VIVAS Health is the only health insurer committed to distribute through insurance brokers and financial advisors as well as through its direct channels. The company has 2000 corporate customers including large multinational employers; is the leading insurer of previously uninsured customers and the leader in web based business.
- VIVAS Health has won a number of awards – the founder, Oliver Tattan, was the winner of the Emerging Category of the Ernst & Young Entrepreneur of The Year Awards 2007, the Marketing Team were winners of the Best Marketing Team in the 2007 All Ireland Marketing Awards, the company also won the KPMG Financial Services Excellence Awards 2006 and Customer Services Awards 2006.
- More information can be found at www.vivashealth.ie.