Insurance giant Aviva, the owner of Irish group Hibernian, has secured regulatory approval to sell insurance products in Poland through AIB's subsidiary Bank Zachodni.
Approval from the European Commission's competition division for the venture comes days after it emerged that Hibernian was in talks to take a significant stake in Irish health insurer Vivas, in which AIB has a 33.33 per cent stake.
Aviva said last November that it had entered an exclusive 15-year bancassurance partnership with Bank Zachodni to sell life and general insurance products through its branch network in Poland.
Under the terms of the agreement, Aviva and Bank Zachodni will each hold 50 per cent of the equity share capital of two newly established joint venture companies and will each contribute 50 per cent of the total £13.2million (€17.69 million) working capital for the new companies.
The companies will sell life and general insurance products respectively, distributed through the exclusive arrangement with Bank Zachodni.
In Ireland, Hibernian is believed to be in talks with International Investment and Underwriting (IIU), the investment vehicle of financier Dermot Desmond, about acquiring its 33.33 stake in Vivas.
While negotiations between the two sides are said to be at an advanced stage, a Vivas spokeswoman declined to comment on reports that Hibernian wants to take a majority stake in the business by buying the stake held by its management. Informed sources have said Vivas is being valued at about €130 million, placing a price of about €43 million on IIU's shareholding.
Vivas was set up in 2002. IIU, AIB and its management, led by chief executive Oliver Tattan, each has a one-third stake.
