The Irish Life board is examining how the successor to the current managing director Mr David Kingston will be appointed. Mr Kingston has informed the board that he wants leave Irish Life when his contract expires at the end of 1998.
The board is understood to have appointed advisers to examine how Mr Kingston's successor should be chosen and to report on the availability of suitable candidates. An actuary, Mr Kingston has been managing director of Irish Life since 1984. He has been an employee of the group since 1968.
Mr Kingston has overseen the development of group strategy. One of his priorities in recent years has been to ensure that Irish Life becomes one of the main players in a consolidating financial services market. As part of that strategy the group is known to be very interested in acquiring New Ireland. The expected sale of New Ireland could accelerate consolidation trends and put its acquirer into a strong position to become an important player in wider financial services. The acquisition of New Ireland would fit Irish Life's strategy of expanding its distribution capacity in the life assurance and savings products market through New Ireland's strong broker relationships. The acquisition would also suit Irish Life for defensive reasons - reducing the threat of the creation of another stronger life market competitor. But it would have other defensive implications for Irish Life as the wider financial services market consolidates though mergers and acquisitions and traditional distinctions between financial services providers blur. Acquiring New Ireland would put Irish Life in a strong position to move into the wider financial services area through the acquisition of a bank, or, in the longer term, a demutualised building society. Irish Life is understood to be interested in looking at the TSB Bank, if the Government decides to go ahead with its sale. The life assurance group already has relationships with First National, which this week confirmed plans to de-mutualise within the next 18 months if members approve the move. Some years ago First National took over the Irish Life Building Society and First National acts as a tied agent for Irish Life's assurance and savings products. Though First National would be protected from takeover for five years following flotation, Irish Life would be able to take a significant stake in the public company, in the way that the UK bank Abbey National took a stake in Irish Permanent following its flotation. It could also form more strategic business relationships with First National. With consolidation expected to ultimately produce an Irish financial services market with three of four large full product/service operations, and a large number of small niche players, Irish Life has to consider acquisitions in a number of stages if it wants to become a major player in the market.
