Europe's largest insurance company, Allianz, has acquired 66 per cent of AGF Irish Life, the holding company which owns 100 per cent of Church & General and Insurance Corporation of Ireland. The move is unlikely to have any effect on the day-to-day operation of either local firm, and forms part of a corporate restructure.

The remaining shares in the company are held by Irish Life, which has agreed merger terms with Irish Permanent.

Earlier this year, the Germany-based Allianz made a successful takeover bid for Assurances Generales de France, a major French insurance multinational, acquiring 51 per cent of AGF's equity in the process.

Allianz and AGF said last night that they had rationalised their operations worldwide. AGF will control insurance operations in France, Belgium, the Netherlands, the Middle East and South America, while all other insurance operations will be controlled by Allianz.

AGF Irish Life holdings said last night this division of operations was reflected in the shift in control of the Irish companies.

"I greatly welcome the arrival of Allianz as our major shareholder. Having a majority shareholder of the size and stature of Allianz is a great boost to management and staff of AGF-Irish Life Holdings," said the Irish group chief executive, Mr John O'Hanlon.

"I know that our policyholders and brokers will also derive great comfort in that, in dealing with us, they are dealing with Europe's largest insurance group," Mr O'Hanlon added. `'I am looking forward to working closely with Allianz in the coming years to further develop our business in Ireland."

AGF Irish Life Holdings said it had already benefited from the Allianz acquisition of AGF, in that it is currently taking over the insurance operations of Cornhill - Allianz's British subsidiary - in both the Republic and Northern Ireland.