Burmo,
We have been looking at this item for our clients and especially so post Cyprus. Our position is that such investments are technically an insurance contract and would have avoided the bail in deposit haircuts in Cyprus. No one can guarantee that the same would happen if the situation were to be repeated here, however it is reasonable to expect that such "Insurance policies" would avoid deposit haircuts. Even if this were not to be the case then our view is that you would be no worse off than having funds over €100k in a deposit account in Ireland.
If you were even thinking about this route we would suggest that Standard Life are worth considering as all investments with them are covered ( in the event of insolvency at Standard Life ) for up to 90% of their value at the time of insolvency, by the U.K FSCS. This is an explict guarantee by a Govt that is still rated AAA by S&P and Aa1 by Moodys compared to our domestic rating of BBB+
On a seperate point if you were looking at this structure as a deposit alternative, we would recommend that you select an option where you have access to the funds at short notice rather than tying up the funds for a longer period.
From a risk management perspective you are doing the right thing by asking these type of questions. If you are interested please send me a pm and we can provide you with a briefing note we have prepared for our clients on this item.
regards Vincent