Ireland’s Quinn Healthcare Sold in Management Buyout

Quinn Healthcare, which describes itself as Ireland's second-largest health insurer, has been sold to a group of its senior managers in a deal for which Swiss Re provided reinsurance support.

Quinn said it has almost 500,000 customers and 330 employees, based in Cork in the south of the country. "This agreement reinforces competition in the market," Quinn said in a statement.

Government-owned Vhi Healthcare dominates the market. Earlier this month, in a move it acknowledged was likely to increase private medical insurance premiums by a "significant" amount, the Irish government announced plans to allow public hospitals to charge private patients for their treatment. Vhi said the planned changes could push up premiums by more than 50%. This would be unaffordable "at a time when an increasing number of people are struggling to maintain their health insurance policies," the insurer said at the time (Best's News Service, Dec. 17, 2011).

Quinn Healthcare has operated mainly independently since it was bought in 2007 from U.K.-based health insurer BUPA, according to Donal Clancy, managing director. The company was founded in 1996 as BUPA Ireland.

"This independence will be further confirmed by the sale to members of the management team, which will also be accompanied by the appointment of Elips Life (a wholly owned subsidiary of Swiss Re) as the underwriter," Clancy said in a statement.

Quinn described the management group behind the buyout as highly experienced in health care both in Ireland and abroad. Swiss Re's participation, Clancy said, will "bring increased innovation and value."

The company is to move eventually to a new brand, Clancy said. In the meantime, he said, it will continue to operate as usual.

Bruce Hodkinson, head of life and health origination, Europe, Middle East and Africa for Swiss Re, said the deal offers strong prospects.

"With our global stature and experience in life and health insurance we see this as an excellent fit with our business," Hodkinson said, "and we're pleased to be able to support the management of Quinn Healthcare with a reinsurance solution that helps to provide long-term security to the policyholders and employees of the company."

Attempts to obtain comment from Quinn and Swiss Re were unsuccessful.

Units of Swiss Re currently have a Best's Financial Strength Rating of A+ (Superior). Elips Life AG has a rating of A (Excellent).

(By Robert O'Connor, London editor: [email protected])