The government is poised to appoint investment bankers next month to advise on the sale of health insurer VHI.

The Department of Health said it is pressing ahead with plans to privatise VHI and that the hike in premium prices announced by the company last week of between 15% and 45% will have no impact on the sale process. The department said on Friday that it is evaluating tenders from a range of investment advisers.

The sale depends on the implementation of a risk equalisation scheme, which would compensate VHI for the fact that a greater proportion of its customers are older, and on moves to have VHI comply with solvency levels set by the Financial Regulator.

To meet the solvency requirements the company will require a capital injection by the state. In an interview with the Sunday Tribune last September, VHI chief executive Jimmy Tolan said the state aid needed would be in the region of €200m.

The final figure hasn't been set yet and will depend on several factors, including the EU's Solvency II directive, which sets the levels of reserves for insurers.

The company said last week that it would need to show it was viable and make sustainable profits to attract a range of bidders.

Health minister Mary Harney said last year that the privatisation would occur in 2013 after the introduction of risk equalisation scheme. The Health Insurance Authority is conducting a public consultation on a new scheme.

VHI said the increase in premium prices is necessary to offset the increased cost of medical treatments and rising charges in public hospitals.