The takeover by Hibernian of the Celtic commercial lines business is just another move in the ongoing consolidation in the insurance sector. But the takeover must put a question mark over the future of Celtic in the general insurance market.

While parent Eureko insists that Celtic will continue to write car and household insurance from its Galway base, the operation is small in an increasingly aggressive market. It would be not be a surprise to see Celtic sold off to one of the bigger players in the market.

Outside Ireland there are interesting moves afoot which could have a longer term impact on the Irish insurance market. The outcome of the hostile bid for French company AGF by Italian company Generali and the rival white knight move by German company Allianz will mean further consolidation in the Irish market.