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Signage for Allied Irish Banks (AIB) on one of its buildings in Galway, Ireland, Sept. 9, 2020. REUTERS/Clodagh Kilcoyne
DUBLIN, June 23 (Reuters) – Allied Irish Banks (AIBG.I) said Wednesday it would form a joint venture with Canada Life to close the gaps in its life, savings and wealth products.
The joint venture will be equally owned by Canada Life, a subsidiary of Great-West Lifeco Inc (GWO.TO).
“The move to establish this joint venture is in line with AIB’s ambition to complete its customer suite of products and diversify revenues,” AIB said in a statement.
“With this strategic initiative, AIB aims to provide clients with a range of life protection, retirement, savings and investment options, enhanced by integrated digital solutions with ongoing access to our qualified financial advisors.”
The Irish lender highlighted Canada Life’s “deep experience” with the Irish bancassurance market through Irish Life Assurance, which is also a subsidiary of Great-West Lifeco.
AIB currently operates under a distribution agreement between agents and Irish Life, and will enter into a new distribution agreement with the new joint venture company.
Chief Executive Colin Hunt stressed the need to close gaps in AIB’s life, savings and wealth products when he outlined the bank’s medium-term goals last December. L1N2II0LU
AIB expects its equity investment in the joint venture to be approximately EUR 90 million ($107.51 million), equivalent to approximately 10 basis points of CET1. ($1 = 0.8372 euros)
Reporting by Graham Fahy; Edit by Elaine Hardcastle
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