7th Apr 2008 07:00
Aviva PLC07 April 2008 News release 7 April 2008 AVIVA TO ENTER IRISH HEALTH INSURANCE MARKET • 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 healthinsurance business VIVAS Group Ltd ("VIVAS Health"). Allied Irish Banks plc ("AIB")* will continue to hold the remaining 30% equity, further strengthening AIBand Hibernian's existing relationship. The value of VIVAS Health's gross assetsat 31 December 2007 was €88.9 million** (£65.4 million#). Following the completion of this deal Hibernian's operations will span generalinsurance, life and pensions and health insurance. The health insuranceproducts 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 theIrish private medical insurance market. It has built a strong reputation as adynamic and innovative health insurance provider in the Irish market. Stuart Purdy, CEO of Hibernian Group, comments: "This acquisition brings ussignificant growth potential by combining our distribution reach and brandstrength with the innovative and competitive VIVAS Health product range. Itwill position us as a provider of the full range of life, non-life andhealthcare products, strengthening our role as Ireland's leading multi-lineinsurance group." Hibernian is the number one provider of general insurance in Ireland and is atop three provider in the life and pensions market. With approximately 1.2million customers, Hibernian has been providing insurance products in Irelandfor 100 years. AIB operates out of over 276 outlets in Ireland. Hibernian currentlydistributes life and pensions and motor business through AIB; and healthinsurance distribution will further enhance the relationship. The closing of the transaction, which is subject to regulatory approval, isexpected to take place in the first half of 2008. -ends- * Allied Irish Banks Plc will continue to hold its 30% equity in VIVAS Healththrough its subsidiary Allied Irish Banks (Holdings and Investments) Limited ** Unaudited Irish GAAP figures per the draft statutory financial statements asat 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 of2007 - ends - Enquiries: Media Danielle Anthony, senior group media relations manager +44 (0)20 7662 9511 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 fromInternational Investment and Underwriting (IIU) and VIVA Health's management andstaff. • Hibernian is one of Ireland's largest and most successful financialorganisations 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 2007produced an operating profit of €352.9m (2006: €188.9m). • Aviva is the leading provider of life and pensions to Europe withsubstantial positions in other markets around the world, making it the world'sfifth largest insurance group based on gross worldwide premiums at 31 December2006. • Aviva's principal business activities are long-term savings, fundmanagement and general insurance, with worldwide total sales of £49.2 billionand funds under management of £364 billion at 31 December 2007. • The Aviva media centre at www.aviva.com/media includes image, companyand product information and a news release archive. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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