Anglo Irish Bank has been granted approval in principle from the Department of Enterprise, Trade and Employment to set up an insurance company. The bank applied for the licence in January this year and expects the new firm to trade from January 2001.

The new firm, to be named Anglo Irish Assurance Company, will provide a range of personal, corporate and retirement investment products.

It will compete in the life assurance, pensions and savings markets with Irish Life and Permanent, Friends First and subsidiaries of the Bank of Ireland and AIB.