Permanent TSB

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Permanent TSB Group Holdings p.l.c.
Type Public company
Traded as ISEQIL0
Industry Financial services
Founded 1884[1]
Headquarters Dublin, Ireland
Key people Jeremy Masding (CEO)
Alan Cook (Chairman of the Board)
Products banking, asset management
Revenue €878million (2008)[2]
Operating income Increase €341 million (2008)[3]
Net income €53 million(2008)[4]
Total assets €54.5 billion (2008)
Employees 4,800 (2004)
Website http://www.permanenttsbgroup.ie/

Permanent TSB Group Holdings p.l.c., formerly Irish Life and Permanent, Plc (Irish: Cuideachta Bheatha na hÉireann) is a provider of personal financial services in Ireland.[5]

During the 2008-14 Irish Banking Crisis the group was split. The profitable Irish Life Group was purchased by the government for €1.3 billion, and subsequently sold to Great-west Lifeco in July 2013.[6] The remaining bank was renamed Permanent TSB Group Holdings plc and received a further injection of €2.7 billion of capital by the Irish State,[7] bringing it into majority state ownership.[8]

The Group has over one million customers in Ireland. The chief executive of Irish Life & Permanent was Kevin Murphy, who succeeded Denis Casey in that capacity in May 2009.[9] He retired in June 2013. In March 2011 during the Irish banking crisis the bank was said to be in need of an external €4.0 billion bailout.[10] This view is disputed by shareholders.[11]

In February 2011 SEB (Skandinaviska Enskilda Banken AB) acquired Irish Life International Ltd (ILI), so it now operates under the corporate name SEB Life International Assurance Company Limited.

On 19 February 2013, Great-West Lifeco of Canada, announced its acquisition of the Irish Life Group for €1.3 Billion. This was disputed by the shareholders. The Supreme Court gave its judgement on 9 July 2013,[12] rejecting the shareholders' application to delay the sale, pending the hearing of their challenge of the sale. This was heard on 21 January 2014.[13] and concluded on 13 February 2014. Judgement was reserved and on 15 August 2014 the case was referred to Europe.[14] [15]

IL&P holds a minority interest in Allianz, the third largest general insurer (i.e. non-life assurance) in the Irish market.

History & background[edit]

The company is historically derived from three different companies:

  • Irish Life Assurance
  • Irish Permanent Building Society
  • Trustee Savings Bank

It trades under the names:

  • Irish Life for life assurance, investments and pensions
  • Permanent TSB for banking, mortgages, loans, credit and debit cards

Irish Life Assurance[edit]

Irish Life was a life assurance company created in 1939 with state assistance and concentrated on life assurance and investment products. By 1936, as a result of the Great Depression, many life assurance companies were technically insolvent.

  • The City of Dublin Assurance Company, Limited;
  • the Irish Life and General Assurance Company, Limited;
  • the Irish National Assurance Company, Limited; and
  • the Munster and Leinster Assurance Company, Limited

were amalgamated.

Later some British companies shed their Irish operations, and merged them into this new company. They were:

The intention was to form a new company and then release its shares back on the market. However, other events in 1939, made shares in a life assurance company less attractive. The shares were finally sold in July 1991.

The 1939 company followed the procedures of the Prudential, its largest component.

In 1965 Irish Life entered the UK market and competed against its former parent, initially under its own name. Later it acquired The City of Westminster Assurance. Irish Life and The City of Westminster Assurance closed for new business, in the UK in 1996. This 'closed book' was sold to Chesnara for £47.5 million on 5 May 2005.

The Prudential re-entered the Irish market, under its own name. Then sold their second Irish operation to the Insurance Corporation of Ireland (ICI). Allied Irish Banks took over Insurance Corporation of Ireland. Shortly afterwards, the general insurance company became insolvent. The Insurance Corporation of Ireland Life (ICI Life) was the Life Assurance subsidiary of the Insurance Corporation of Ireland (The Government of Ireland wrote off the debts of Insurance Corporation of Ireland and sold the ICI Life arm as a profitable going concern to Prudential. Prudential Life operated in Ireland until its acquisition by Irish Permanent Building Society. The life office then traded as Progressive Life. In 1999, Irish Life Assurance plc and the Irish Permanent Building Society merged to form the Irish Life and Permanent Group, the operations of Progressive Life and Irish Life Assurance were merged.

Even though the government had to assist Allied Irish Banks following the debacle of Insurance Corporation of Ireland, they established another life assurance company, called 'Ark Life'.

Contrary to popular opinion, Irish Life Assurance was never a Semi-State company.
In 1939 the minister owned 18% of the shares in the company.
In 1947, restructuring and purchase by Minister of Finance of shares held by British life assurance companies resulting in a government holding of 90.25%. In July 1991 these shares were released on the market.

In March 2012, Irish Life Assurance was sold to the Irish State for €1.3 billion as part of a bank recapitalisation program following the 2008–14 Irish financial crisis.[16]

Permanent TSB[edit]

Permanent TSB, previously the Irish Permanent Building Society, was founded as The Irish Temperance Permanent Benefit Building Society which was founded in 1884. Building societies existed to help their members build their own home. Initially they were terminating societies. Their membership was closed and they wound up when all members had a house. Permanent Building societies had a rolling membership. Hence the name: Irish Permanent Building Society.
In 1940 under new managing director Edmund Farrell its name was changed to Irish Permanent Building Society. Farrell, and later his son, Edmund Farrell Jnr managed the building society until about 1990.
In 1992 Irish Permanent Finance, specialising in auto finance, was established.
In 1992 branch operations were opened in London and Belfast.
In 1992 a Banking subsidiary established in the Isle of Man.
In 1994 the Irish private banking operation of Guinness & Mahon was acquired.
In 1996 Capital Home Loans a UK mortgage lender was acquired.

It was a mutual organisation, jointly owned by those saving and borrowing. It demutualised to form a plc on 21 September 1994.
Irish Permanent was a predominantly personal banking and mortgage company which currently does business in the name of Permanent TSB because of the 2001 acquisition of the Irish Trustee Savings Bank from the Government of Ireland.

Trustee Savings Bank[edit]

The origins of the TSB Bank date back to 1816 when the first Irish Savings Bank was established in Waterford. Shortly afterwards, Savings Banks were established in Cork, Dublin, Monaghan and Limerick. The Dublin and Monaghan banks merged in 1977, followed by the amalgamation of the Cork and Limerick banks in 1986. In 1988, Waterford was incorporated into the Dublin bank and finally, in 1992, Cork and Limerick Savings Bank amalgamated with Trustee Savings Bank Dublin, to form TSB Bank.

For much of its existence, the Savings Banks operated under the Savings Bank Act 1863, which effectively restricted them to offering savings products. Legislation in 1965 ultimately allowed them to successfully broaden their product range into such areas as personal lending, mortgages, current accounts, credit cards and foreign exchange. The Bank, which was an unincorporated statutory entity, was governed by the Trustee Savings Bank Act 1989.

It was purchased by Irish Life and Permanent from the Government of Ireland in 2001. The banking arm of Irish Life and Permanent now trade under the name Permanent TSB.

See also[edit]

External links[edit]

References[edit]

  1. ^ "IL&P snapshot". Businessweek. Retrieved 27 July 2009. 
  2. ^ http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ric=IPM.I
  3. ^ "Key Financial Data" (http). IL&P. Retrieved 27 July 2009. [dead link]
  4. ^ "Key Financial Data" (http). IL&P. Retrieved 27 July 2009. 
  5. ^ "Permanent TSB mainpage- disclaimer -". Retrieved 27 July 2009. 
  6. ^ "Great-West Lifeco completes acquisition of Irish Life". www.irishlifegroup.ie. Irish Life Group. Retrieved 2013-07-18. 
  7. ^ "No new matters allowed in PTSB recapitalisation challenge". 
  8. ^ "Group History - Permanent TSB". 
  9. ^ "Irish Life & Permanent appoints Kevin Murphy as new chief executive- – Irish Times". Irish Times. 18 June 2009. Retrieved 27 July 2009. 
  10. ^ "Banks need fresh €24 billion – Central Bank". RTÉ News. 31 March 2011. Retrieved 31 March 2011. 
  11. ^ Skoczylas, Piotr. "PTSB Bank does NOT NEED anywhere close to €4bn extra capital". Website for Shareholders of Irish Life & Permanent Group Holdings plc (IL&P). Scotchstone Capital Fund. Retrieved 31 August 2011. 
  12. ^ "Great-West Lifeco update on Irish Life transaction". Canada NewsWire. 9 July 2013. Retrieved 9 July 2013. 
  13. ^ "PTSB shareholders take on minister". Irish Examiner. 20 January 2014. Retrieved 20 January 2014. 
  14. ^ Hosford, Paul (15 August 2014). "Was it legal? High Court refers PTSB bail-out case to Europe". The Journal. Retrieved 16 August 2014. 
  15. ^ Managh, Ray (15 August 2014). "Judge to seek EU ruling on bank shareholders’ challenge". Irish Examiner. Retrieved 16 August 2014. 
  16. ^ "Government buys Irish Life for €1.3 billion".