Irish Life & Permanent is working a €200 million ($291 million) securitization of value of business in force (VIF), according to a Reuters report.

The deal would cash in future profits expected to accrue from Irish Life's portfolio of insurance policies.

Irish Life is looking to bolster the capital position of its banking unit permanent tsb, which needs an estimated €500 million in extra capital before it can take part in a consolidation of Irish lenders, according to the report.

"Retaining the VIF capital release within the life company also ensures an adequately capitalized life company which may be in a position to make distributions to investors from 2011 when the government guaranteed bank deconsolidates from the group," Goodbody analyst Eamonn Hughes said in a note.

Irish Life is expected to carry out a rights issue to raise the remainder of the sum needed.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.