First Active is no longer a tied agent for Irish Life according to letters sent to mortgage-protection policy holders last week. "This change is taking place because of the different business strategies now being pursued by both companies - you may already be aware of Irish Life's plans to merge with Irish Permanent plc," the letter says. The change does not affect these policies and customers do not need to alter or change repayment arrangements. Mortgage-protection cover and benefits will also remain unchanged.

Naturally, it is impossible for Irish Life to maintain a "tied agent" relationship with the soon-to-be competition. Tied agents only sell policies from one company while independent agents sell a range of products from a number of firms.

At present no other organisation is acting as a tied agent for Irish Life, said a spokesman. However, Irish Life has relationships with Ulster Bank, SBD brokers, Irish Nationwide, National Irish Bank and TSB. The companies sell Irish Life products either under their own brand or as an Irish Life product. These custom-made products include tracker bonds, mortgage-protection products and pensions.