Aviva unit Hibernian to buy Irish health insurer

DUBLIN (Reuters) - Hibernian Group, the Irish arm of Britain's biggest insurer Aviva (AV.L), said on Sunday it planned to enter Ireland's health insurance market by buying 70 percent of Vivas Group Ltd.

Hibernian said in a statement that it would buy the stake from investment company International Investment and Underwriting (IIU) and Vivas management and staff.

The company did not say how much it would pay for the holding but said the value of Vivas' gross assets at the end of last year was 88.9 million euros (70.2 pounds).

Allied Irish Banks (ALBK.I)(ALBK.L) plans to hold onto its 30 percent stake in Vivas under the terms of a deal that is subject to regulatory approval, Hibernian said.

"Vivas Health is the third-largest player in the Irish health insurance market," Hibernian said, adding that it planned to "grow the business significantly."

(Reporting by Paul Hoskins, editing by Martin Golan)