Irish Life is to close its loss making French general insurance company Xaar having failed to sell the business as a going concern. The company announced yesterday it has now decided to close Xaar to any new business and will make appropriate arrangements for its existing book of business.

Irish Life, which set up Xaar in 1992, said the costs of the closure have been fully provided for in Irish Life's 1997 figures, but refused to disclosure the extent of its provisions.

The company had been hoping to conclude a deal to sell Xaar by the end of the year. It leaves the French market at a financial loss.