Bank of Ireland has announced the sale of Premier Direct's small motor insurance intermediary business. Hibernian and Eagle Star have acquired the right to offer new terms to its customers as their policies fall due for renewal.
The amount of money involved in the transaction has not been disclosed. In a statement, Bank of Ireland said the value of the net assets being disposed was "negligible". The transaction is due to be completed by the end of June.
Up to 36 Bank of Ireland staff will be affected by the sale. News of the sale drew an angry response from the Irish Bank Officials Association which represents the employees.
IBOA general secretary, Mr Larry Broderick, yesterday wrote to the bank to request a meeting to discuss the imminent sale and to express his concern at the lack of consultation about the move.
He has also written to each of the 80 employees at Premier Direct, which includes the 36 who work at its motor insurance intermediary business, telling them not to co-operate with the bank in the forthcoming sale.
The IBOA is concerned that this sale is evidence of Bank of Ireland's strategy to outsource non-core businesses which would have wider implications for other bank staff.
Bank of Ireland said it had decided to sell the business after a strategic review of the operations. It was estimated to have between 2 and 3 per cent of the Irish motor insurance market and was generating premium income of more than €1 billion.
The insurance policies sold by Premier Direct were underwritten by Hibernian and Eagle Star, with the bulk of the business handled by Hibernian.
The bank's head of insurance services, Mr Alan Daly, said the general insurance business was a key strategic business for the bank and offers significant growth potential in its core product lines such as home insurance.
"The strategic review determined our motor insurance intermediary business as non-core in Ireland. We will be communicating with our customers regarding changes in our business," he said.
Bank of Ireland said there would be no compulsory redundancies as a result of the sale of this business.
"All impacted staff will be offered alternative positions within the Bank of Ireland group," it said in a statement.
