Life assurance companies, Scottish Provident and Scottish Mutual International, have decided to stop selling new policies in the Republic. This will lead to the immediate loss of 53 jobs.
The two life assurance groups are owned by the UK bank, Abbey National, which said its decision reflected the extremely poor investment market conditions and its preference to concentrate on the UK market.
At the end of last year, the two companies had 125,000 policies with Irish customers, the majority of which are with-profits savings investments.
There is around to €4 billion in funds managed for these customers.
Yesterday's decision will not have any impact on those policy-holders, according to Mr Peter Towers, the director of Abbey National's international life businesses.
"We will be contacting all our brokers to explain how the decision will affect them and to assure them that we are committed to continuing to servicing our existing customers in the same highly professional manner," he said.
The investments will continue to be managed in the same way and by Abbey National Asset Managers, which is based in Glasgow.
Scottish Provident's three regional sales offices in Limerick, Cork and Galway will be closed over the next six months and their functions will be transferred to Dublin. The group is continuing to examine the structure of its Irish businesses and further job losses from its 280 staff are likely.
Scottish Provident and Scottish Mutual both have head offices that are expected to be merged, and could result in the elimination of functions that are duplicated.
The 53 job losses that have already been identified are largely in the marketing and sales division.
The businesses are estimated to have about a 10 per cent share of the total with-profits sector in Ireland.
Overall their share of the life assurance sector is up to 3 per cent.
Scottish Provident's UK and Irish with-profits fund was closed in August 2001 following the company's takeover by Abbey National.
The UK bank has been trying to sell Scottish Provident International, its other international life business. Yesterday it said it was still looking at exit options.
Policy-holders with queries can contact the company on 1850 931 931.
