Group will need €100m to boost solvency

VHI which dominates the health insurance market with a 68% market share will need a capital injection of “at least €100m” to bring its solvency ratios into line.

The group is in “discussions” with Government to find a solution to that problem and a number of options are being explored, group chief executive, Jimmy Tolan said.

To satisfy the Financial Regulator on solvency, the group is obliged to have 40% in free reserves relative to premium income against its current level of 27.7%. That is high by European standards, but is the benchmark set under the VHI Healthcare Amendment Act, passed by the Oireachtas last year.