The Mediolanum Group, an Italian-based banking and insurance group part owned by Italian presidential candidate Silvio Berlusconi, has chosen the Republic as its hub to expand its fund management and insurance services into Europe.

The bank, which has had an IFSC-type operation since 1997 and currently manages €5 billion in Dublin, announced an expansion of its Irish operations yesterday at the official launch of its new European fund management headquarters in Ballsbridge.

The new centre will initially employ ten people with full-time staffing levels expected to double within a few years of operation. But an addition 50 or 60 staff would be working on outsourced contracts on Mediolanum business, according to Mr Giuseppi Lalli, director of international operations for Mediolanum.