The State’s biggest mortgage lender Irish Life & Permanent said today it has finalised a re-insurance deal with Swiss Re which will be “capital enhancing up to a maximum of €250 million”.
The lender, which is not included in the Government capital injection plan announced last night, has seen its shares rise almost 14 per cent in the first hour of trading in Dublin this morning. Irish Life & Permanent said it has "noted" the Government's plan.
At 9.20am Irish Life & Permanent shares were up almost 14 per cent at €1.65, giving it a market capitalisation of €456 million.
In a statement Irish Life & Permanent said it has maintained a strong and flexible capital position and expects its tier 1 capital ratio of 10.1 per cent reported in the middle of the year to be a "a similar level" by year end.
The lender said its capital requirements are based upon the retail nature of its loan book, with its residential mortgage loan book accounting for 88 per cent of total loans. Irish Life & Permanent said its impairment provisions reflect the low-risk nature of its lending.
Irish Life & Permanent added that it has submitted a 3-year business plan to the Financial Regulator and is
reviewing it with the Regulator and the Department of Finance.
