Vhi has been authorised by the Central Bank to trade as a non-life insurance company and as an insurance intermediary.
The newly authorised entities - Vhi Insurance DAC and Vhi Healthcare Ltd - will commence trade this Friday, July 31st.
The insurer applied for authorisation last year to comply with EU regulations on minimum solvency levels that apply to rival insurers.
The total capital reserves that the company will hold upon commencement will be €540 million.
In preparation for authorisation, the Vhi Group raised €90 million of subordinated debt through a funding arrangement with Berkshire Hathaway.
It avoids the need for the insurer to get a capital injection from the exchequer.
Vhi also published its annual results for the year ending 31st December 2014.
The company generated a net surplus of €49.8 million for its consolidated business from a total gross earned premium of €1.46 billion.
The surplus represents a margin of 3.4%.
The Minister for Health, Leo Varadkar, welcomed the news as a vote of confidence in the health insurance sector and for the improved Irish economy in which it is operating.
"I very much welcome that Vhi is now regulated similar to any other health insurer and that from 31st July will operate as a limited liability company with subsidiaries.
"This is a significant achievement by Vhi and is the successful result of a lengthy and very complex process. On behalf of the Government I particularly welcome that Vhi has achieved authorised status without the need for Exchequer investment."
