Hibernian Group plc ("Hibernian"), Ireland's largest insurer, today announced its planned entry into the Irish health insurance market following its agreement to acquire the majority shareholding (70%) in VIVAS Group Ltd ("VIVAS Health") from International Investment and Underwriting ("IIU") and VIVAS Health's management and staff.
Hibernian Group plc ("Hibernian"), Ireland's largest insurer, today announced its planned entry into the Irish health insurance market following its agreement to acquire the majority shareholding (70%) in VIVAS Group Ltd ("VIVAS Health") from International Investment and Underwriting ("IIU") and VIVAS Health's management and staff. The acquisition is subject to approval by the Competition Authority and the Financial Regulator. Upon completion of the transaction Hibernian will cover all of VIVAS Health's existing members and plans to grow the business significantly. Allied Irish Banks plc ("AIB"), with whom Hibernian already has a strong relationship holds a 30% equity stake in VIVAS Health and will retain its shareholding.
VIVAS Health is the third largest player in the Irish health insurance market and was established in 2004. In a short space of time the company has established a strong reputation as a dynamic and innovative company that provides excellent health insurance cover at competitive prices. VIVAS Health members currently enjoy typical savings of more than €425 for a family of four compared to the equivalent VHI plan (VHI Plan B Options, compared with VIVAS Health we plan Level 2)*. Hibernian looks forward to bringing the great cover and value that VIVAS Health has pioneered in the market to even more customers through Hibernian's significant sales channels.
Stuart Purdy, CEO of Hibernian Group, said: "This is good news for the Irish health insurance market. Hibernian's reputation for trust alongside its market leading position and the innovative, competitively priced VIVAS Health product offering is a powerful combination for consumers in Ireland. With Hibernian's size, experience, and distribution capabilities, we look forward to building further on VIVAS Health's success and giving more consumers a better deal. We will be delighted to welcome VIVAS Health's members to the Hibernian Group and look forward to continuing to look after the healthcare needs of them and their families and their broader insurance needs."
Hibernian has been delivering excellent insurance cover and service to consumers in Ireland for 100 years. It is the number one general insurance provider in Ireland and is a top three life and pensions provider. Since 2006 it has sold VIVAS Health products through its branch network and looks forward to making health insurance cover available to consumers through all of Hibernian's sales and distribution channels, as well as through VIVAS Health's direct and non-direct channels and AIB's distribution channels.
VIVAS Health members remain fully covered and need take no action as a result of this announcement. There will be no change to any members' policies or benefits and all members should continue with their current health treatment plans unchanged.
Members' information is available at www.vivashealth.ie
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*
| VIVAS Health "we plan" Level 2 | VHI Plan B Option | |
| 2 adults | €1,541.00 | €1,969.78 |
Media Reference:
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Ita Gibney +353 86 259 8737
Donnchadh O'Neill +353 87 2056504
Hibernian Group +353 1 898 8000
Alan Tyrrell +353 86 850 8673
Notes to editors:
About Hibernian
- 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 31st December 2007 produced an operating profit of €352.9m (2006: €188.9m).
- The Group occupies the number one position in the General Insurance market and a top three position in Life and Pensions.
About Aviva
- 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.
The Transaction
- The value of VIVAS Health gross assets at 31 December 2007 was €88.9 million.
- Under the agreement Hibernian will acquire a majority shareholding (70%) of VIVAS Health, while AIB retains its 30% equity stake.
About VIVAS
- Private health insurer VIVAS Health was founded in 2004 to address the lack of competition in the Irish market for innovative health insurance products.
- VIVAS Health empowers people to take greater control of their health by offering a greater range of healthcare benefits than other insurers, by promoting preventative medicine and by educating customers on how to stay healthy. The company has also consistently offered the best value health insurance in the market, regularly being recognised as value leader by independent commentators. First-to-market benefits include cervical cancer vaccination, cord blood stem cell preservation and lifestyle benefits such as laser eye surgery.
- VIVAS Health is 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 the KPMG Financial Services Excellence Awards 2006 and Customer Services Awards 2006.
- More information can be found at www.vivashealth.ie