A second leading Irish company has expressed an interest in taking over Bupa Ireland's health insurance business, it has emerged.
The company, as yet unidentified, is not currently involved in insurance or banking, according to sources.
Minister for Health Mary Harney said she had been approached yesterday by the company, which has been in contact with Bupa about acquiring its Irish business.
The company, which is wholly Irish-owned, thus joins insurance giant Axa as a potential suitor for Bupa. However, Bupa, which has strongly rejected Axa's advances, last night declined to comment on whether it would entertain any approach by the Irish company.
The company said it was making strenuous efforts to redeploy its 300 staff in Fermoy within the group. One possibility is that the Fermoy facility would be used as a processing centre for Bupa's international business.
Ms Harney said that Bupa had made extraordinary profits in the Irish market - over 18 per cent, compared to 5-6 per cent in the UK. Although it was to be subject to risk equalisation, the rules that would apply had been changed in its favour.
She said that she was disappointed and surprised that Bupa would not facilitate a chance for its customers to move to new competitors.
"Companies in the private sector don't walk blindly into acquiring companies if they believe they won't make a profit. These are not charitable organisations, these are hard-nosed companies in the business of making profits.
"I find it very hard to understand why 450,000 customers' and their staff's interests would not be better served by an orderly transfer of business to companies who are interested and have a track record rather than withdrawing from the market and not renewing premiums," she said.
A spokesman for Bupa said yesterday the reason the company could not engage with Axa was because it was in active and continuing discussions with the Government up to last week. Axa is a direct competitor in the UK health insurance market.
Asked whether discussions were ongoing, he said that as far as Bupa knew communications lines were "still open".
Speaking on RTÉ Radio, Ms Harney said that she hoped to announce later this week the membership of a three-person group to advise her on the profitability of the Irish health insurance market.
Axa this week began offering health insurance through Tesco supermarket branches in the UK. However, Tesco Ireland said it had no immediate plans to introduce these products here.