Canada Life has written to holders of its with-profits policies, informing them that they will be entitled to receive common shares once conversion to a public company is complete.

Holders of eligible with-profits policies as of April 2nd, 1998, including holders of lapsed policies which were reinstated and where certain criteria were met, would qualify for the share allocation, the life assurance company said.

"The number of shares to be allocated to you will depend on factors still being developed but may include the amount of your premiums, cash values and the amount of time your policy has been in force with Canada Life," the letter, signed by the company's chairman, president and chief executive Mr David Nield, said.

The company has around 150,000 customers in the Republic and around a third are expected to qualify for free shares, which are likely to be worth more than £2,000 (€2,540).

Canada Life also promised that additional information would be made available throughout the conversion process while a comprehensive package, including the conversion proposal and a request for policy-holders' vote on demutualisation, would be sent out later this year.

However, Canada Life has first to receive regulatory approval from Canada's federal insurance regulator and regulators in other countries where it operates, including the Department of Enterprise, Trade and Employment.

The company said that, provided the conversion received the necessary approvals, it hoped to make an initial public offering of shares on the Toronto and Montreal stock exchanges. "Our hope is to complete this process by late 1999 or early 2000."

Policy-holders who wish to obtain further information are advised to call the company's customer service centre at 1850 515051 or to speak to their broker or Canada Life financial adviser.