Equitable Life has said the British Appeal Court decision has no direct implications for its policy-holders in the Republic, as the company never sold guaranteed annuity products here.

But the company's Irish customers will be keeping a close eye on developments in Britain and Equitable's planned appeal to the House of Lords.

To the extent that it reopens the issue of Equitable's liabilities, and again raises the question of whether Equitable might be forced into the arms of a predator, Irish policyholders could be affected.

Equitable has some 20,000 to 25,000 Irish shareholders, many of whom would stand to gain if the company was forced to demutualise.

The British court ruling is not expected to have wider implications for the Irish life assurance industry, however, despite the many similarities between the industries in both states.

Although a number of life assurance providers in the Republic have sold guaranteed annuity policies, it is understood that none of them sought to differentiate between policyholders, the crux of the issue for Equitable Life in Britain.

A Standard Life spokesman said it was able to meet its liabilities on any guaranteed products it had. Norwich Union said it had about 20 such policies maturing each month and, while the longterm value of the policies reflected the cost of the guarantee, it had never sought to differentiate between policyholders.

Equitable Life has been operating in the Republic, where it employs around 25 people, since 1991. The 238-year-old mutual insurer was ranked 11th in the Irish life and pensions market in 1998, just behind Hibernian Life, according to figures released by the Irish Insurance Federation last year. It had gross premium income of £95.4 million (€121 million) in life and pensions.