Irish Life CEO put off retirement plan over potential sale

Irish Life Group Ltd chief Kevin Murphy postponed his plans to retire at the end of 2012 as the Government revived talks to sell the state-owned insurer to Canada’s Great-West Lifeco Inc.

Mr Murphy agreed to delay stepping down “for some months pending the appointment of a successor”, according to Ray Gordon, a spokesman for Irish Life.

“That matter is expected to be resolved in the coming months,” he said, declining to comment on the sale process.

Irish Life Retail CEO Gerry Hassett, 47, is the only internal candidate to succeed Mr Murphy, according to two people with knowledge of the matter, who declined to be identified. Mr Gordon declined to comment and Mr Hassett was not available for comment.

Great-West, based in Winnipeg and owner of Boston-based Putnam Investments, was set to acquire Ireland’s largest life and pensions company in 2011 before pulling out in November that year amid concerns about the eurozone debt crisis. The Government set a €1.3bn price on Irish Life as it re-opened talks with Great-West late last year, according to three people familiar with the matter.

An accord may be reached this quarter, said the people, as the State seeks to lower its €64bn bill for rescuing the nation’s financial system over the past four years.

The Department of Finance and Great-West both declined to comment on the matter.

The Government bought Irish Life for €1.3bn in June from Irish Life & Permanent Plc, which was subsequently renamed Permanent TSB Group Holdings Plc. Mr Murphy, who became IL&P’s CEO in Jun 2009, had announced his retirement in the same month.