Bank of Ireland and Il&P are most likely to be the big winners from the maturity of the SSIA scheme as savers search for a new home for their funds, according to Davy stockbrokers.
The authors of the report - Davy's economist Rossa White and banking analyst Scott Rankin - estimate the SSIA scheme will be worth a total of almost €16 billion when likely investment returns are added to savings and the Government's top-up contribution.
The brokers forecast that 20 per cent of the SSIA pool will be spent and that a substantial portion of funds will be re-invested in life assurance type products. The Davy model assumes that SSIA customers will continue to save - but at about half the rate they are doing under the State sponsored scheme.
The release of funds will boost consumer spending to 6.5 per cent in 2006 and 6 per cent in 2007.
Although there may be negative implications for bank lending margins, life subsidiaries can look forward to a significant boost from redirected savings, according to the Davy report.
Among the Irish banks, Davy named Bank of Ireland and Irish Life and Permanent as the two most likely firms to benefit from the savings windfall as these companies have the largest life operations.
While the first SSIA funds will mature on May 31st next year, most accounts will not mature until 2007 as savers waited shopped around for deals. However research has shown that 2006 should also see a bonanza as the "early adopters" put in more to begin with, according to Davy.