Irish Life’s third-quarter profits rise 33% to €36m

Irish Life contributed €36 million to the profits of its Canadian parent company Great-West Lifeco in the third quarter of this year. This represented an increase of 33 per cent on the same period of 2015, according to results published on Thursday.

David Harney, chief executive of the Irish Life group, said the quarter included a number of important developments for the company.

“In September we successfully launched Irish Life Health as a new force in the health insurance market. We are very pleased with the positive response, including the decision of a number of corporate clients to transfer their company schemes.

“Also, during the third quarter the total investor assets in Irish Life’s Multi-Asset Portfolio Strategies reached close to €6 billion, including €2 billion by 35,000 investors in Retail MAPS funds.”

In addition, there were significant market share gains in Irish Life’s corporate business division, driven primarily by the winning of a number of very large pension schemes.

Great-West Lifeco’s results also note that Irish Life’s €120 million UK property fund has reopened to redemptions. It was closed for withdrawals in July in the wake of the Brexit referendum result due to “sustained outflows”, with the company introducing a six-month notice period for investors. This was lifted last month.

Customers

Irish Life is the biggest life and pensions group in Ireland, with more than 1 million customers. It was acquired from the State by Great-West Lifeco in 2013 for €1.3 billion.

It set up Irish Life Health this year by acquiring Aviva Health and purchasing the 51 per cent of GloHeath that it did not already own. It has more than 420,000 customers and a 21 per cent market share.

According to Great-West Lifeco, the integration of the health insurance businesses is expected to deliver annual synergies of €16 million, with integration and restructuring costs of the same value.

The Canadian company said the integration was “on track”, with restructuring costs of €8 million booked and annual synergies of €1 million achieved.