Aviva Health pays €11m dividend to shareholders

Aviva Health paid a dividend of €11 million to its shareholders in 2014, according to accounts just filed by the Irish company.

The health insurer, which has about 300,000 customers here, was recently put up for sale by its joint venture owners Aviva and AIB, with Macquarie appointed to advise on the process. Accounts for Aviva Health Insurance Ireland Ltd show it made this payment as an interim dividend last year. Some 70 per cent of the sum would have been paid to the British insurer with the balance to the Irish bank. No dividend was paid in 2013.

It is understood the dividend reflected the fact that the insurance company had a solvency ratio of 205 per cent at the end of 2014, well above the 150 per cent level required by the Central Bank of Ireland. In such instances it would be expected to return at least some of the surplus capital to its shareholders.

Aviva Health made a profit of €11.4 million in 2014, which was 37 per cent lower than in 2013. Its net written premium declined by 1 per cent to €115.7 million while its net claims were 2 per cent lower at €84.3 million.

The accounts show Aviva Health has two major outsourcing contracts. One began last year and is worth €2.86 million a year. The third-party provider is not named but it is believed to relate to the provision of certain IT services.

The other contract is worth €2.21 million over a 10-year period beginning in 2006 and is thought to relate to Abtran, the Irish customers services group.

Aviva Health paid €6.4 million in wages and salaries to its 114 staff last year, with total staff remuneration running to €10.1 million.