DUBLIN: Bancassurer Irish Life & Permanent has hired Deutsche Bank to advise it on options for selling its insurance arm, including a possible IPO or a trade sale, a spokesman said on Wednesday.
Irish Life & Permanent has to raise 4 billion euros ($5.6 billion) to boost its balance sheet as part of a fresh 24-billion-euro recapitalisation of the financial sector designed to reassure investors that Ireland has its banking crisis under control.
Irish Life & Permanent's life arm, with an embedded value of around 1.6 billion euros, is the jewel in the company's crown and has helped prop up the wider group in the face of mounting loan losses and funding difficulties.
Irish Life's banking arm, permanent tsb, is expected to be effectively nationalised to meet the capital bill.
"The objective is to raise the most amount of money in order to minimise the amount of capital required," the spokesman said.
Ireland's creditors at the IMF, the EU and the ECB want the government to recapitalise its banks by the end of July but Irish Life & Permanent has until the end of October to do a deal.
"Our objective is to be ready for a sales process from July," the spokesman said.
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