As part of our regular product review process, the Investment Protection Annuity (IPA) has been temporarily withdrawn from our post retirement product range. This decision has been taken in view of the current very low interest rate environment which has significantly increased the cost of providing the capital protection benefit under this product.

This change will come into effect immediately. The IPA option has been removed from online quotation system www.pensionchoice.ie and users will no longer be able to add this feature to new annuity quotations. The option has also been removed from our Annuity Application Form.

The chart to the side (source: Irish Life Investment Managers) illustrates the progression of Eurozone yields over the last five years. There has been a very dramatic fall in yields over this period, in particular since the start of 2014. This fall in Eurozone yields has resulted in generally lower annuity rates and therefore, increased the level of the death benefit under the IPA product. The lower interest rate environment also means that a higher value must be attributed to benefits that are payable in the future.

The combination of these factors means the IPA structure is no longer viable in the current economic environment.

We will honour all Investment Protection Annuity quotations that have been obtained up to and including 3 June 2015, provided they are submitted to us inside the normal 14 day quotation guarantee period. Thereafter, we will not provide new quotations with this option or transact any new business on this basis.