Allied Irish Banks (AIBG.I) on Wednesday said it would form a joint venture with Canada life as it seeks to plug 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 create this joint venture is aligned with AIB’s stated ambition to complete its customer product suite and diversify income,” AIB said in a statement.
“Through this strategic initiative AIB intends to offer customers a range of life protection, pensions, savings and investment options enhanced by integrated digital solutions with continued access to our qualified financial advisors.”
The Irish lender highlighted Canada Life’s “deep experience” of the Irish bancassurance market through Irish Life Assurance, which is also a subsidiary of Great-West Lifeco.
AIB currently operates under a tied agency distribution agreement with Irish Life, and will enter into a new distribution agreement with the new joint venture company.
Chief Executive Colin Hunt highlighted the need to plug gaps in AIB’s life, savings and wealth products when he set out the bank’s medium-term targets last December. L1N2II0LU
AIB expects its equity investment in the joint venture will be around 90 million euros ($107.51 million), equating to around 10bps of CET1. ($1 = 0.8372 euros)