QUINN HEALTHCARE:WHILE THE future of the general insurance business became clearer yesterday with Anglo Irish Bank and Liberty Mutual announced as the preferred bidder, Quinn Healthcare remained on the blocks for sale.
The sale process is said to be six to eight weeks behind that of the general insurer, according to sources familiar with the situation.
It is understood Anglo/Liberty and Irish Life are both eyeing the business and due diligence is taking place.
Acquiring Quinn Healthcare, which has 500,000 customers, would give Irish Life, the country’s largest life and pensions provider, an entry into the healthcare market.
Quinn Healthcare is believed to have premium income of about €300 million.
Reports have suggested that it could sell for about €100 million.
Quinn Healthcare, which competes with VHI and Aviva in the health insurance market, was not part of the administration process that involved Quinn Insurance.
Quinn Healthcare was set up in 2007 after Seán Quinn bought the business from Bupa, which quit the Irish market.
It employs 326 people in Little Island, Co Cork.
The company has benefited from VHI customers switching over after premium increases of up to 45 per cent were imposed by the State group earlier this year.
Quinn introduced average price increases of 6 per cent from April 1st.
Quinn Healthcare said yesterday it was “business as usual” in spite of the changes taking place at Quinn Insurance and Quinn Group.
It said the sale process “continues”.
Dónal Clancy, general manager of Quinn Healthcare, said: “We will continue to operate the business as normal. The process of the sale of Quinn Healthcare continues and we expect a decision to be announced in the near future.”
Separately, Mr Quinn’s 24 per cent stake in stockbroker NCB is expected to come into play in the near future.
A spokesman for NCB said it “noted” the announcements relating to the ownership of Quinn Group but did not wish to comment further.
NCB was acquired by management from Royal Bank of Scotland some years ago, with Mr Quinn purchasing a minority stake in the business.
