Irish Life & Permanent, the third largest quoted financial company on the Irish market, is holding investment discussions with the Industrial Development Board in the North about a potential new multimillion pound administration centre.
The Dublin-based financial services group is believed to be interested in establishing a new centre in Newry that could employ more than 150 people.
Industry sources say discussions are at an "exploratory stage" but that the North's development agency is "very committed" to the project. Irish Life & Permanent is the largest life assurance company in the Republic. It also has businesses in the United States, the UK and Northern Ireland where it has a small mortgage operation.
The group is in the process of integrating its #430 million (£339 million) acquisition of TSB Bank in the Republic into Irish Life & Permanent, a move that will give it a larger retail presence in the South.
A spokesman for Irish Life & Permanent confirmed that the group had been "exploring the possibility of establishing an administration outside Dublin".
"The centre would complement the head office in Dublin and we are exploring a number of possible locations for the centre. We have not reached any conclusions yet," the spokesman added.
He said no timetable had been established for the investment project but it is understood that the new centre would primarily service the group's growing life assurance business. The company, which has around 20 per cent of the market in the Republic, provides a range of risk protection, pension, savings and investment products.
Sources close to the company stressed that the development of the centre would not replace any existing jobs in the South but would create additional employment within the group.
Irish Life & Permanent is the most recent in a series of Irish financial institutions to look at Northern Ireland as an investment location.
It is understood the group wants to locate administrative and support services outside Dublin because of the shortage of skilled staff.
Industry observers believe the IDB is hopeful it will secure the investment.
