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Canada,Ireland : IRISH LIFE takes control over AVIVA HEALTH & GLOHEALTH.

The Canadian-owned Irish Life has announced that it has acquired the control of Aviva Health and GloHealth, moving perfectly to play a dominant role in the health insurance market of Ireland.

With this development, the Irish insurance market will have three players from four now.

In 2015, AIG bought Laya Healthcare, a key rival of Aviva, in a deal value of which reportedly stood at around 90m. The health insurance market of Ireland has again witnessed a deal of such magnitude with Irish Lifes purchase of Aviva Health and GloHealth.

Aviva Health, a 70:30 JV between Aviva and AIB, is the number three player in health insurance sector of Ireland following VHI and Laya.

Irish Life, which already owned a stake of 45% in GloHealthcare, has purchased the Aviva Health stake from Aviva.

The company, with the Aviva Health acquisition, will be able to sit close to the number two player Laya by market share.

The newly structured health insurance business of Irish Life will be serving 400,000 private healthcare customers.

Europe is going to implement new regulations, dubbed as Solvency 2, to compel institutions to have additional capital as a protective measure against possible losses, forcing insurance firms across the region to make reviews on their capital deployment processes.

The proceeds from of the Aviva health business sale is expected to be utilized to reinvest into the other units in Ireland, and the asset evaluation move is believed to be due to an assessment of the group's comparative return on capital involving various business segments.

With health insurance customer base of 1 million, VHI will maintain its control on the market. Laya, the second largest player, has a private health insurance customer base of roughly half one million.

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Publication:Mena Report
Geographic Code:4EUIR
Date:Mar 12, 2016
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