Hibernian takes control of Vivas (S B Post)
Hibernian Insurance has reached an agreement to take a 70 per cent stake in health insurer Vivas, in a deal that will see AIB retain a 30 per cent shareholding.
The deal involves the purchase of the 33 per cent held by Dermot Desmond’s IIU and the management team led by chief executive Oliver Tattan.
Vivas is the number three health insurer after VHI and Quinn Health and has around 150,000 customers, or a 7 per cent market share.
The terms of the detail have not been disclosed, but it is believed to place an enterprise value on the company of around €45 million. Based on this price, Tattan would receive €10 million for his 22 per cent stake and fellow director Stephen Loughman would received around €2.5 million.
Hibernian is one of the country’s largest integrated insurance groups and it already sells the Vivas product on a franchise basis.
The company, which is owned by British insurance giant Aviva, has an existing joint venture with AIB in relation to life assurance.
Vivas reported insurance premium income in 2006 of €29 million, up from €9.2 million the previous year.