Profits at Irish Life Assurance doubled in 2015

Profits at the country’s biggest life and pensions group more than doubled last year as it recorded significant increases in both its retail and corporate sales.

Accounts just filed for Irish Life Assurance plc show that it made an after-tax profit of €122 million in 2015, up from €47 million in the previous year.

The company increased its market share by one point to 36 per cent, and serviced about 1 million customers.

This entity is one part of Irish Life’s overall business here, which is owned by Canada’s Great-West Lifeco.

The accounts show that Irish Life Assurance approved a dividend of €138 million for the 2015 financial year, up from the €73 million it paid in the previous financial period.

This dividend is paid to the company's shareholders – Irish Life Group Ltd and Canada Life Ireland Ltd, both of which are resident here.

Irish Life Assurance closed 2015 with regulatory capital, after allowance was made for the dividend, of €924 million, some €4 million lower than the previous year. Its annual premium equivalent income (APE) rose by €425 million from €365 million.

Annual synergies

Great-West Lifeco acquired Irish Life from the State in mid-2013 for €1.3 billion and merged it with its Canada Life business here. The accounts state that the group expects to achieve annual synergies of €48 million from transaction, 20 per cent higher than originally forecast.

In terms of retail sales, its APE was 15 per cent higher year-on-year at €219 million.

The company said it saw “strong growth in single premium life and pension sales, particularly through the independent broker and branch networks”.

On the corporate side, its APE sales rose by 19 per cent to €206 million “due to significant bulk annuities and transfer values”.

The accounts also state that Irish Life Assurance was entitled to an “introducer” fee of €200,000 for making corporate client introductions to GloHealth, a health insurer in which Irish Life was a minority shareholder.

Earlier this year Irish Life took full control of GloHealth, acquired rival Aviva Health and merged the two businesses under a new brand Irish Life Health.