IPM Irish Life&P.Gp

RNS Number:9014L
Irish Life & Permanent PLC
05 May 2005



Irish Life & Permanent plc agrees on sale of UK life business
                                                                                
   *City of Westminster Assurance - for Euro70 million.

Move in line with Group's "Ireland First" strategy.

Thursday 5th May 2005. Irish Life & Permanent plc has reached agreement with
Chesnara plc on the sale of the Irish company's closed UK life business, City of
Westminster Assurance, for a price of Euro70 million (stg#47.5 million).

The transaction is conditional upon the approval of the shareholders of Chesnara
plc and the Financial Services Authority in the UK. Closing is expected in June
of this year.

City of Westminster Assurance Ltd. (CWA) is a wholly owned subsidiary of Irish
Life & Permanent plc and is held through Irish Life (UK) Holdings plc. CWA was
originally acquired by the then Irish Life Group in 1993. The book was closed to
new business in 1995 and in 1996 the business of Irish Life's UK Branch was
integrated into the company.

In the year ended 31st December 2004, City of Westminster Assurance reported a
pre-tax contribution of Euro10.1 million (stg#7.0 million). The embedded value of
the company at that date was Euro84.6m million (stg#59.6 million) after payment of
the dividend in respect of 2004 to Irish Life & Permanent plc of Euro6.5 million
(stg#4.6 million). The company has Euro1,100 million (stg#770 million) in funds
under management. Irish Life Investment Managers will continue to manage these
funds.

Chesnara plc was listed on the official list in London in May 2004 as the
holding company of the life assurance activities formerly owned by Countrywide
Assured Group. Its principal subsidiary is called Countrywide Assured which
manages the run off of the existing book, and also continues to sell and market
Guaranteed Income and Growth Bonds through Independent Financial Advisors and
directly to investors.

Speaking today, Peter Fitzpatrick, Group Finance Director, of Irish Life &
Permanent, said that the sale of City of Westminster Assurance was in line with
the Group's Ireland First strategy; "We've been looking at our strategic choices
for the company for some time. While we've been happy with the financial
performance of the business, it had no long term strategic significance for us
and therefore, it was incumbent on us to explore other options. We're very happy
with the deal we've reached with Chesnara which we believe meets the needs of
both policyholders in City of Westminster Assurance and our own shareholders. We
look forward to a continuing relationship with the business through ILIM's
involvement in the fund management of the book."

Irish Life & Permanent was advised on the transaction by Hawkpoint Partners
Limited.


Further Information:

PR Advisers:
Ray Gordon
MRPA Consultants
Ph: 01 6788099
Ph: 087 2417373


Financial Advisers:
Hugh Elwes
Managing Director
Hawkpoint Partners
Ph: +44 20 7655 4687








                      This information is provided by RNS
            The company news service from the London Stock Exchange

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