Scottish Equitable International, a subsidiary of the Aegon group, will open a subsidiary in Dublin in September to sell offshore investment products into the UK market.

The company is in discussions with the Irish authorities to get a licence and the Dublin business will run alongside its activities in Luxembourg. Scottish Equitable will initially employ 10 people in Dublin with information technology aspects and actuarial activities being run from Luxembourg. The Irish office will target the affluent market in the UK. It expects the move will increase its premium income to £500 million sterling (#822.5 million) from around £300 million.

Managing director Mr David Healy said: "We are keen to maximise our market share in the UK. The UK offshore investment market is growing quickly and product structures are evolving very rapidly. We believe that a base in Dublin will enable us to develop products to complement our existing Luxembourg range, and provide a springboard for us to achieve future growth in the UK."

The group has no immediate plans to sell its products in the Irish market but will review this depending on its success, he said. Scottish Equitable International believes that adding a second base within a European offshore jurisdiction will allow it to become a top three player in the UK offshore investment market. It targets investors with £50,000 sterling or more to invest. The first new product to be issued from Dublin is likely to be a with-profits bond, later this year.

Scottish Equitable's actuarial director, Mr Stephen Bishop, has been appointed general manager of the Dublin operation. The group's Luxembourg base will remain its headquarters and policy administration centre. The sales and marketing for the UK market will continue to be run from Scottish Equitable's Edinburgh office.