Irish Life & Permanent said its Irish Life retail unit and Royal Liver Assurance are in exclusive talks about the possible purchase of the Industrial Branch business, also known as the Home Service business, of Irish Life (Retail) by Royal Liver.
The Industrial Branch business, which offers a home based premium collection service at its core, is a distinct business unit within Irish Life's (Retail) operations, it said.
No time scale has been set for concluding these discussions and both sides have stressed that there is no certainty as to the outcome.
Should the transaction proceed, it would be subject to separate approvals by the Department of Enterprise, Trade & Employment, the High Court and the voting members of Royal Liver Assurance.
From the perspective of Irish Life (Retail), the decision to explore the sale follows a comprehensive review of its business, the companies said in a statement.
In recent years, Industrial Branch business has become an increasingly small part of the activities of the retail division which has enjoyed very rapid growth, the statement added.
For Royal Liver, the interest in exploring the acquisition reflects the fact that the Irish Life Industrial Branch business generates annual premium income of some £17 million and has a substantial customer base.
AFP