Hibernian Aviva
Encyclopedia
Aviva Group Ireland plc is the Irish arm of British insurance firm Aviva plc. Its headquarters are in Dublin. The company also provides investment management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
and pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
services.
Hoover's
Hoover's
Hoover's, Inc., a subsidiary of Dun & Bradstreet, is a business research company that has provided information on U.S. and foreign companies and industries since 1990. Since 1993, the company has made its information available on its website.-Operations:...
reports that Aviva is the largest general insurer in Ireland, with a market share of more than 20%.
The company also has a majority shareholding in Aviva Health Insurance.
History
The company was established in 1908 as Hibernian.In 1925, the Guardian Assurance Company Ltd purchased a majority shareholding in the company and, by 1931, it was offering fire, accident, motor, fidelity guarantee and plate glass insurance.
In 1935, Guardian Assurance sold the company to a consortium of Irish firms, including the Bank of Ireland. In 1940, the company started to transact engineering business and, in 1946, added marine insurance in partnership with the Irish National Insurance Company Ltd. In 1964, the Commercial Union Assurance Company Ltd acquired the majority shareholding from the Bank of Ireland and, in May 1966, changed the company's name to the Hibernian Insurance Company Ltd. By 1969, Commercial Union owned 99.9% of shares in the company.
Following acquisition by Commercial Union, the company ceased operating in Northern Ireland and took over Commercial Union's business and subsidiaries in the Republic of Ireland. By 1973, as well as offering fire, accident and marine insurance, the company was managing an investment portfolio consisting of cash, stocks, shares and property.
In 1979, a consortium of Irish investors acquired the majority shareholding in the company while Commercial Union retained a 30% share. In 1982, the company was authorised to commence business in the UK and, in 1984, changed its name to Hibernian Insurance plc.
In May 1986, the company was purchased by the Hibernian Group plc. On 4 November 1999, it was acquired by CGU plc, which had been formed following the merger of Commercial Union and the General Accident Fire and Life Assurance Corporation Ltd.
On 31 March 2000 shareholders in CGU plc and Norwich Union plc approved a GBP£7.5 billion merger, endorsing a combination that would create Britain's biggest insurance group. The new company, to be based in London and called CGNU plc, would be the largest provider of general insurance and the second-largest provider of life insurance in Britain. It would be Europe's fifth-biggest insurer. CGU shareholders would control a majority stake at 58.5 percent of the new group, while Norwich Union shareholders would control a minority stake at 41.5 percent.
The former Norwich Union (Ireland) was then subsequently absorbed into Hibernian.
The company found itself at the centre of controversy in June 2008 when it announced that it was to transfer much of its operations to Bangalore
Bangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...
, India, with the loss of 580 jobs.
In 2006, Hibernian was mentioned in the hit British song "Jose and His Amazing Technicolor Overcoat." It is mentioned at the beginning when Irish and Chelsea F.C football legend Damien Duff says, "Hibernian Insurance. Pretty good."
In 2008 Hibernian announced that they would be rebranding as "Aviva" as part of a global rebranding campaign to have all their subsidiaries operate under the same name. In January 2009 the company was renamed as "Hibernian Aviva", and in December 2009 the company was rebranded as simply "Aviva".
In November 2008, the Central Bank of Ireland fined the company for various breaches of the Consumer Protection Code.
In April 2011, it dismantled its Dublin-based European holding company and carried on the same operations from London.
The Central Bank of Ireland fined Aviva in July 2011 for failing to have proper controls and procedures surrounding the safeguarding of client assets.
Aviva Health Insurance
Aviva Health Insurance Ireland Limited is Aviva's health insuranceHealth insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
arm in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. Founded in 2004 as Vivas Health, it quickly established itself in the marketplace, and by 2007 had doubled in size every six months, with a turnover run rate of €
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
100 million per annum. It is the largest insurer of previously uninsured people in Ireland. Aviva took a majority shareholding (70%) in the company in 2008. Allied Irish Banks
Allied Irish Banks
Allied Irish Banks p.l.c. is a major commercial bank based in Ireland.AIB is one of the so called "big four" commercial banks in the state. The bank has one of the largest branch networks in Ireland; only Bank of Ireland fully rivals it. AIB offers a full range of personal and corporate banking...
(AIB) own the other 30%.
The company has 110 employees, direct and outsourced, located in Dublin and Cork
Cork (city)
Cork is the second largest city in the Republic of Ireland and the island of Ireland's third most populous city. It is the principal city and administrative centre of County Cork and the largest city in the province of Munster. Cork has a population of 119,418, while the addition of the suburban...
. Aviva Health has attempted to influence regulatory reform in the private health insurance market, in particular in its drive to alter the current risk equalisation scheme.
Aviva Health offerings are geared towards people in their late 20s to early 30s and families with children. Another key segment is elderly couples whose children are all leaving the home. The company provides the widest choice of hospitals and treatment centres in the Irish insurance market, education and information, web-based administration and support, and places a strong emphasis on primary care, preventative medicine and screening.
The Aviva Health customer base includes almost 1,200 corporate customers across all industries in Ireland. With over 120,000 individual customers, the company is already the largest insurer of previously uninsured, as well as the largest destination for customers looking to switch their health insurance provider. The company is also one of the largest insurers of teachers, nurses and non-nationals. Principal corporate customer sectors include financial services, pharmaceutical, public sector, information technology, hospitality
Hospitality
Hospitality is the relationship between guest and host, or the act or practice of being hospitable. Specifically, this includes the reception and entertainment of guests, visitors, or strangers, resorts, membership clubs, conventions, attractions, special events, and other services for travelers...
, manufacturing, construction and healthcare.
Vivas Health
The company was launched in October 2004 under the name Vivas Insurance Limited (which traded as Vivas Health - sometimes capitalised as "VIVAS Health"), becoming the third player to enter the Irish health insurance market, competing with former state monopoly Vhi HealthcareVhi Healthcare
The Voluntary Health Insurance Board — which trades under the brand name Vhi Healthcare, and is still commonly referred to in Ireland as "The VHI" - is the largest health insurance company in the Republic of Ireland. It is a statutory corporation whose members are appointed by the Minister for...
and British insurer BUPA Ireland (which has since been sold to Quinn Group
Quinn Group
The QUINN group is a business group headquartered in Derrylin, County Fermanagh, Northern Ireland. The privately owned group has ventured into cement and concrete products, container glass, general insurance, radiators, plastics, hotels, and real estate...
and renamed Quinn Healthcare.)
Hibernian Health
Following widespread speculation for some months and leaks to the press, on Sunday 6 April 2008 Hibernian Group, the Irish subsidiary of British insurance group AvivaAviva
Aviva plc is a global insurance company headquartered in London, United Kingdom. It is the sixth-largest insurance company in the world measured by net premium income and has 53 million customers in 28 countries...
, announced that it had purchased at 70 percent interest in Vivas Insurance, the remaining 30 percent being held by Allied Irish Banks
Allied Irish Banks
Allied Irish Banks p.l.c. is a major commercial bank based in Ireland.AIB is one of the so called "big four" commercial banks in the state. The bank has one of the largest branch networks in Ireland; only Bank of Ireland fully rivals it. AIB offers a full range of personal and corporate banking...
, the last remaining original shareholder. The sale valued the company at approximately €35 million and saw financier Dermot Desmond
Dermot Desmond
Dermot Desmond is an Irish businessman and financier. He is estimated to be worth €1.45billion and is ranked by the Sunday Independent as the sixth-richest person in Ireland.-Background and education:...
as well as CEO Oliver Tattan, senior management and an estimated 35 staff sell their shares, with Mr. Tattan alone estimated to have received over €10 million in the sale. The deal saw the entrance of Ireland's largest general insurer, Hibernian, into the Irish health insurance market for the first time as more than a minor player. The acquisition closed on 15 May 2008 and the company was renamed Hibernian Health on 1 July 2008.
Aviva
The company was rebranded again as "Hibernian Aviva Health" in January 2009 as part of AvivaAviva
Aviva plc is a global insurance company headquartered in London, United Kingdom. It is the sixth-largest insurance company in the world measured by net premium income and has 53 million customers in 28 countries...
plc's decision to replace all of its different brands (Hibernian, Norwich Union
Norwich Union
Norwich Union was the name given to insurance company Aviva's British arm before June 2009. It was originally established in 1797. It is the biggest life insurance provider in the United Kingdom, and has a strong position in motor insurance...
, and Commercial Union) with the Aviva name between 2008 and 2010. In early 2010 the company was rebranded as Aviva.
Aviva Stadium
On 12 February 2009, it was announced that the new Lansdowne Road stadium will be called the Aviva StadiumAviva Stadium
The Aviva Stadium is a sports stadium located in Dublin, Ireland, with a capacity for 50,000 spectators. The stadium is built on the site of the old Lansdowne Road venue, which was demolished in 2007, and replaces that stadium as home to its chief tenants: the Irish rugby union team and the...
, after a deal with Aviva reported to be worth €40 million and the deal will last for 10 years.