Vivas reports loss of €3.6 million

HEALTH insurer Vivas made a loss of €3.6 million in 2005, its first full year of trading.

The company, which is backed by AIB and financier Dermot Desmond, generated premium income of almost €9.3 million, up on the €537,701 of business it wrote in 2004. The company began trading in October 2004.

A spokesperson for the company said the losses were associated with the heavy investment in its product and that it was on track to have 100,000 customers signed up by the end of this year.

The company made loss of €3.8 million in 2004, most of which was generated with the starting up of the company.

Vivas employed 25 people at the end of 2005, up from 11 in 2004. The wages bill for the year was up by less than €500,000 to €2.3 million despite the workforce more than doubling. Directors’ remuneration for the year, including pension contributions, were €715,777. The bulk of this is believe to have been paid top chief executive Oliver Tatton, a former chief executive of the State-owned VHI. The Vivas board also includes Michael Walsh, Mr Desmond’s business partner.

Vivas sells its range of health insurance products through a broker network nationwide and through AIB.

Earlier this week it announced that its products can be bought through investment group Hibernian.