Dáil Éireann Debate, Tuesday - 10 July 2012
126 Deputy Niall Collins asked the Minister for Finance his views on State-owned Irish Life having a 30% stake in a newly established private health insurance company; if EU competition issues arise as a result of the State’s shareholding; and if he will make a statement on the matter. [33345/12]
View answer127 Deputy Niall Collins asked the Minister for Finance the reason Irish Life, as a State-owned entity, has been permitted to hold a significant shareholding in a private health insurance company when he is working to divest itself of its shareholding in VHI; and if he will make a statement on the matter. [33346/12]
View answerI propose to take Questions Nos. 126 and 127 together.
I must ensure that Irish Life is run on a commercial, cost effective and independent basis to maximise value for the State. I recognise that Irish Life remains a separate economic unit with independent powers of decision and that its board and management team retain responsibility and authority for determining the Company's strategy and commercial policies and conducting its day to day operations. The State will continue to work on the disposal of the business as soon as market conditions permit.
Irish Life is now a 48.95% shareholder in GloHealth Financial Services Limited, an insurance intermediary licenced by the Central Bank. GloHealth insurance policies are underwritten by Great Lakes Reinsurance (UK) Plc, a subsidiary of Munich Re. I have been informed by Irish Life that the investment does not give rise to issues under EU Competition Law.
The future strategy for VHI is a matter for the Minister for Health.
