Irish Life & Permanent has sold two of its three businesses in the United States for $253.1 million (#296 million).
It is also in discussions with Royal Liver about the sale of its door-to-door insurance collection service.
The group has reached agreement with the US Protective Life insurance company to sell the Chicago-based Interstate Assurance and First Variable. The deal is due to close in October. The sale had been expected following a review of Irish Life's loss-making US activities.
The remaining business, Iowa-based Guarantee Reserve, was responsible for most of the #2-million losses last year.
It operates in the lower margin end of the retail insurance business where there are fewer players, which will make it more difficult to sell.
It has a book value of $208 million, although the group will find it difficult to realise such a price.
The $253.1-million price of the present deal compares with the book value of $268.4 million.
Irish Life will also have to pay $28.2 million in taxes when the sale is closed. The two companies employ 210 staff, of which around 100 are expected to move to Protective.
Irish Life will have to offer a severance package to the others which is expected to cost $2-$3 million.
Meanwhile, no timescale has been set for the completion of discussions with Royal Liver on the sale of the home service insurance business.
This business has also been under review and has become an increasingly small part of the group's overall retail business.
It generates annual premium income of #17 million.
Royal Liver has a well-established home service insurance business in Ireland and the acquisition will expand those operations. Some 170 staff employed by Irish Life are expected to transfer to Royal Liver on completion of a deal.
Royal Liver currently employs 700 in this business.
Any sale would also have to be approved by the High Court.
An independent actuary would have to confirm to the court that the transaction would not adversely affect the benefits to policyholders and that the security of those benefits to customers would be preserved.
