Legal & General (L&G), the UK based diversified financial conglomerate, is planning to purchase New Ireland Assurance's existing annuity business as well as a fraction of its future business, in a deal valued at nearly 136m (£114m).
Further details of the transaction are expected to be announced soon.
L&G annuity business managing director Kerrigan Procter was quoted by the Financial Times as saying that the company is actively looking for opportunities to use its expertise in non-UK markets, including North America and Europe.
"The Irish annuity market for both bulk and individual annuities looks set to expand over the next few years and this arrangement will enable Legal & General to actively participate in this exciting market," Procter added.
Deal to de-risk the pension book covers both annuities bought by individual clients and bulk annuities approved by Irish pension schemes.
Under the terms of the transaction, the UK insurer may assume the liability for paying defined benefit (DB) or final salary pension promises to employees.
Employers and life offices are gradually transferring the payment of pension from their balance sheets and nearly £27bn of DB liabilities has moved to the UK underwriter during the last five years.
The current deal with New Ireland Assurance represents L&G's first annuity transaction beyond the home market and the acquirer believes that it will further expand its global operation over the next three to five years.
Founded in 1836, Legal & General offers protection, annuities, and savings and investment management products in the UK, with a market capitalization of £10bn as at 22 March 2013.