AXA Sun Life, which recently took over Guardian Royal Exchange (GRE), has decided to retain GRE's motor and general insurance business in the Republic but is reviewing its life insurance arm.

GRE's motor and general insurance operations are the largest part of its Irish business, employing the majority of its 800 staff. Approximately 70 people are understood to work in GRE's life section. A decision on whether to sell it is expected within months.

During the first six months of the year, GRE's Irish operation achieved a 20 per cent increase in premium income to £135.7 million, up from £113.2 million last year.