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Canada Life buy Irish Life for E1.3bn

Tuesday, February 19 13:57:23

The Government today said that Irish Life has been sold to Great-West Lifeco - the parent company of Canada Life - for E1.3 billion.

An additional dividend of E40 million will be paid to the State prior to completion, the Minister for Finance, Michael Noonan said.

The agreement is conditional, most notably on receipt of regulatory approvals, which are customary in a deal of this nature.

Irish Life manages approximately one million policies, with over E37 billion of assets under management and employs 2,200 people in Ireland.

The Minister said the State will make no loss on the deal.

"I am very pleased to announce that an agreement has been reached with Great-West Lifeco for the sale of Irish Life.

Today's deal is the first time during this crisis that a company in which we have invested has been returned fully to private ownership. This is a historic transaction and provides the Irish taxpayer with a full return on its investment in Irish Life," Minister Noonan said.

He said that the Irish economy is entering its third consecutive year of growth, our deficit is on a downward trajectory and we are beginning to attract the levels of investment required to create jobs and to make a full return to the markets.

"This progress was one of the reasons that led Great-West Lifeco to renew their interest in late November 2012, almost a year to the day after they previously withdrew."

Great-West Lifeco's Irish business, Canada Life (Ireland), is already a significant employer and is the largest Canadian employer in the State.

"Today's investment by a company of their stature is a significant vote of confidence in the Irish economy and I am sure that this will lead to further investment. The transaction is even more significant to the State when seen in the context of other recent events. All told E10 billion has been invested or committed in the past six months, mainly by international investors, in transactions managed by the State or entities controlled/owned by the State," the Minister said.