QUINN HEALTHCARE SOLD TO MANAGEMENT WITH SWISS RE BACKING

Ireland-based health insurer Quinn Healthcare, which for more than a year has been under the control of Irish Bank Resolution Corporation, has been sold to its management in a deal backed by Swiss Re. Irish state-owned IBRC, formerly Anglo Irish Bank, took over the business following the collapse of the business empire of Sean Quinn, who had bought the healthcare operation from Bupa in 2007. Mr Quinn paid about €130m for the business after UK-based Bupa decided to leave the Irish market. Bupa's decision followed the Irish government's insistence on pushing through a risk equalization scheme, which required all health insurance policies to be available to customers, regardless of age or risk profile. The management buying Quinn Healthcare is unlikely to have paid that much to take over the current operation. The backing of Elips Life, part of Swiss Re, would give Quinn Healthcare capital support. The Quinn brand will be phased out in 2012. Minister of Health James Reilly suggested in a letter to the cabinet that Quinn Healthcare be nationalized and merged with VHI, a plan that was not thought to have gathered much support within the government. Dr Reilly has welcomed the management buyout, but said that he still intended to reform the Irish private healthcare market.