Vhi: Referral to European Court of Justice 'was expected'

Vhi Healthcare have said today's decision by the European Commission "was expected".

The EC have referred the Government to the European Court of Justice over the continued exemption of Vhi Healthcare from certain EU rules on non-life insurance.

Vhi said It was their goal to achieve Financial Regulation as soon as it has achieved the necessary solvency levels as required by the Irish Financial Regulator.

The insurer said: "This is a matter of priority for the organisation as we detailed recently at the announcement of our financial results.

"In the interim period, Vhi Healthcare has sufficient financial strength to ensure that the customer is protected at all times. On the 31st December, 2008 Vhi Healthcare had retained reserves of €340m which is more than sufficient to ensure its customers are protected.

"This compares with shareholder funds of €12m held by the smallest player in the market Hibernian Aviva Health."