DUBLIN: UK insurance group Aviva is preparing to sell its Irish health insurance business, which has about 300,000 customers.
The company has appointed Macquarie to advise it on its strategic options for the business, which is a 70/30 joint venture with AIB.
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No comment was available from Aviva or AIB but it is understood that the process is at an early stage and no bids have yet been received for a business that has experienced reduced profitability in the past couple of years.
In 2014, Aviva Health had gross written premium of €330 million but profits declined by 34 per cent to €12 million. In the first half of this year, its profits reduced to €2.6 million from €5.1 million a year earlier, which was described as better than anticipated due to effective management of expenses and claims.
However, it is understood that its profitability has recovered in the second half of the year and could mirror the outturn of 2014.
It is not clear how much the business might be worth but industry sources suggested it could be between €50 million and €100 million.
