Quinn Group, one of the country's largest businesses, is to enter the Irish health insurance market after it announced that it is to purchase Bupa Ireland.
A statement issued this afternoon confirmed the purchase of the Fermoy-based company.
Bupa managing director Martin O'Rourke:
Some 300 jobs in
the Co Cork
town are also expected to retained following the purchase, which will see the Bupa business maintained as a going concern.
Quinn Group chairman Seán Quinn described the deal as "an opportunity for real competition in the Irish health insurance market".
It will take a number of weeks to complete outstanding details. In the interim, Bupa Ireland will continue taking new business and will honour all existing contracts.
Bupa Ireland had 450,000 subscribers when it announced last month that it was to withdraw from the Irish market over the Government's controversial risk equalisation scheme which would have seen it pay tens of millions of euro to rivals with older membership profiles.
Earlier this month, the company wrote to 50,000 of its subscribers to say that policies which expired at the end of January would not be renewed.
It is not clear as yet how many of these customers have left the company or if their policies will now be covered.
As a newcomer to the health insurance market, the Quinn Group will be exempt from risk equalisation payments for three years.
Risk equalisation was designed to see other insurers compensate rival VHI for having a greater proportion of older, more expensive subscribers. Bupa's decision to exit the irish market followed its loss of a High Court challenge against the introduction of the risk equalisation scheme.
The Quinn Group already operates in the glass, insurance and plastics sectors.
Commenting on the sale, Bupa Ireland's managing director Mr Fergus Kee said: "Our priority since the announcement that we were withdrawing from the market has been to secure the best alternative arrangement for our staff and customers."
"We tried until as recently as last week to achieve a compromise with Government that would have allowed us to stay. This was not possible. We believe the transfer of the business to the Quinn Group to be the next best alternative," he said.
BUPA Ireland managing director Martin O'Rourke described the sale as "good news for our members."
"The arrangements will take a short while to implement. In the meantime it will be business as usual in Fermoy. We will be available to help with new business, renewals and customer enquiries."
