THE VHI has appointed an acting chief executive, who will undertake a major review of all its business activities.

Mr Aidan Walsh, who is a partner at accountants Craig Gardner Price Waterhouse, is taking up the interim position for a six month period from February 1st, the VHI said yesterday.

Mr Walsh (40) is currently in charge of Craig Gardner Price Waterhouse's corporate financed division.

Dunng his period with the VHI, Mr Walsh will undertake a full examination of its core health insurance business and its response to increased competition from BUPA.

It is also understood that Mr Walsh will be closely looking at the VHI's options in terms of entering a strategic alliance with a possible partner to expand its range of products and distribution channels.

Mr Walsh is bringing a wide range of experience in setting up company mergers and acquisitions for Irish companies. Much of his time is expected to be spent on seeking out the best possible partner for the VHI.

The company has considered linking with a British healthcare company under which the VHI would sell its products in Ireland.

It has met with Britain's second largest health insurer PPP on a possible marketing link. It is also believed to have held preliminary discussions with several other health insurers.

The temporary appointment was approved yesterday by the VHI board, to give it more time to recruit a long term chief executive.

It had previously identified Midland Health Board chief executive, Mr Denis Doherty as a potential chief executive.

However, Mr Doherty turned the position down to take up a new senior management position in the health service.

Mr Walsh's appointment follows the departure of VHI former chief executive, Mr Brian Duncan last year.

In a bid to attract high calibre candidates for the job, the VHI has indicated that the new chief executive will receive just under £120,000 a year.