It is understood that SEB is seeking to use the acquisition to help it expand into Europe, where Irish Life International is active in nine countries.
The deal is subject to Irish regulatory approval.
Conor McCarthy, head of sales and marketing for Irish Life International, said that the key message for the company’s clients is that there will be no effect on policies, policyholders or their conditions.
SEB Life is a subsidiary of the SEB Group, a large, publicly-traded Stockholm-based bank and financial services provider founded in 1972 by Sweden’s Wallenberg family, which is still involved in the business.
According to a report in today’s Irish Times, SEB Life Ireland has around €3 bn in assets under management and brings in just under €400 million in annual premium income, and generates annual profits of around €120m to €130m.
Based in Dublin, ILI sells life insurance and investment products through a network of introducers and tied agents. It posted a profit in 2009 of €1.1m, while assets under management and premium income in 2010 amounted to approximately €2bn and €370m respectively.The combined SEB/ILI entity will thus have AUM of around €5bn.
Its latest audited accounts show assets at the end of 2010 totalled €1.732bn.
In a statement, Irish Life & Permanent said the sale of its international operation was consistent with its new “strategic focus on the Irish market”. It said the proceeds of the sale would boost the capital requirements of Irish Life & Permanent plc, the Group’s banking subsidiary.
SEB Life Ireland has been operating in the Irish market since 1996 and currently employs 35 people. New office space in Dublin is expected to be found to house the merged entity, the Irish Times report notes.
In its report on the acquisition, the Irish Times also says that Irish Life & Permanent "is expected to be named as preferred bidder for AIB Investment Managers as early as next week".
