Aviva has sold its private health insurer, Aviva Health, to Irish Life. Aviva holds a 70% stake in Aviva Health, a joint venture with AIB which owns the remaining 30%.
Aviva said its general insurance and life & pensions businesses are unaffected by the announcement, and that existing customers, corporate partners and brokers will see no immediate change.
The transaction is subject to regulatory approval and is expected to complete by the third quarter of 2016.
At the half year 2015, Aviva Ireland Health had gross written premium of €163m.
Hugh Hessing, CEO, Aviva Ireland, said: “Since acquisition in 2008, Aviva Health has contributed positively to Aviva Ireland’s overall performance. However, the private health insurance market requires scale to deliver strong returns.
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“Aviva Ireland will therefore focus on our two successful, core businesses of life and general insurance. This will allow us to continue to offer better products and services to over 750,000 Aviva Ireland customers.”
Aviva Health has 302,000 customers and 110 employees in offices in Dublin and Cork.
Irish Life is also taking 100% ownership of GloHealth where it has a 49% stake and that brand will likely disappear.
Bill Kyle, CEO of Irish Life Group, said: “With the benefit of our local skill and market knowledge here in the Irish Life Group, supported by the financial strength and global experience of Great-West Lifeco, we believe Irish Life’s new venture will become the health insurer of choice for Irish customers.”
“We’ve been pursuing a strategy of significantly expanding our presence in the Irish health market, and acquiring Aviva Health and the balance of GloHealth is a dramatic step forward and positions us to offer something really innovative to customers.”
Kyle added that the 160 employees of Aviva Health and GloHealth will have roles within the combined business or will be offered roles within the wider Irish Life group.
GloHealth launched in the health insurance market in July 2012 and has 120,000 customers.
