Canada Life tells customers Irish Life merger to happen next year

Customers of Canada Life have been told its merger with Irish Life is “likely to happen some time in 2014”

Customers of Canada Life have been told its merger with Irish Life is “likely to happen some time in 2014”. This follows the recent sale by the State of Irish Life to Great-West Lifeco, Canada Life’s parent company, for €1.3 billion.

This deal is expected to close in July when regulatory approvals have been received. Great-West Lifeco intends to merge Canada Life into Irish Life and withdraw the brand from the this market.

In a letter to customers sent on the day the deal was announced on February 19th, Mary Cregan, director of service delivery at Canada Life Ireland, said: “Following the completion of the acquisition later this year, and the necessary regulatory approvals, we intend to apply for approval to combine our business with Irish Life.

“This is likely to happen some time in 2014 and, in advance of the integration, you will receive further communication and you will have the opportunity to ask any questions about the proposal.”

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In the meantime, she said it was “business as usual at Canada Life” and assured customers they did not need to take any action as a result of the merger.

‘Vote of confidence’

Ms Cregan described the acquisition of Irish Life as a “major vote of confidence in Ireland” by Great-West Lifeco.

Ms Cregan said customers of Canada Life would have access to a “wider product range and excellent online technology”.

Canada Life has operated in the Irish market since 1903 and has 150,000 customers.

She said staff at Canada Life would have “opportunities” within the larger Irish Life group and its agents would also have the opportunity to join its larger rival. Ms Cregan said she was “confident” that the insurance brokers who have worked with Canada Life over the years would continue to “support our group through their association with Irish Life”.

Irish Life has a 30 per cent share of the life and pensions market in Ireland, with Canada Life holding 5 per cent.

Great-West Lifeco has said the merger will involve voluntary redundancies as part of a €40 million cost reduction plan. Reports have suggested up to 250 job cuts.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times