AIB: commits to forming a life and retirement joint venture with Canada Life
The joint venture will be 50% owned by Canada Life, a subsidiary of Great-West Lifeco Inc.
“The decision to form this joint venture is aligned with AIB’s stated ambition to complement its customer product line and diversify its revenues,” AIB said in a statement.
âThrough this strategic initiative, AIB intends to offer its clients a range of life protection, retirement, savings and investment options enhanced by integrated digital solutions with continuous access to our qualified financial advisors.
The Irish lender highlighted Canada Life’s âextensive experienceâ in the Irish bank insurance market through Irish Life Assurance, which is also a subsidiary of Great-West Lifeco.
AIB is currently operating under a related agency distribution agreement with Irish Life and will enter into a new distribution agreement with the new joint venture.
Managing Director Colin Hunt underscored the need to address gaps in AIB’s life insurance, savings and wealth products when he set out the bank’s medium-term goals last December.
AIB expects its stake in the joint venture to be around 90 million euros ($ 107.51 million), which equates to around 10 basis points of CET1. ($ 1 = 0.8372 euros)
(Reporting by Graham Fahy; Editing by Elaine Hardcastle)