UPDATE 2-Irish Life & Permanent picks insurance exec as CEO

* Appoints Kevin Murphy CEO after departure of Denis Casey

* Murphy has worked at Irish Life since 1972

* Analyst says sensible appointment, comes from strong unit

(Adds analyst comment)

By Andras Gergely

DUBLIN, June 17 (Reuters) - Irish Life & Permanent (IPM.I: Quote, Profile, Research) has appointed Kevin Murphy, a longstanding employee of the group's relatively strong life assurance business, as group chief executive, the company said on Wednesday. Denis Casey resigned from the helm of Irish Life & Permanent in February after a deposit scandal involving the bancassurer and now nationalised Anglo Irish Bank.

Murphy, 57, an actuary by profession, has worked with the Irish Life unit since 1972 and led the group's fund management arm Irish Life Investment Managers between 1993 and 2005. He was appointed to the group's board in 1999.

"Since February of this year he has managed the day-to-day operation of the group alongside Chairwoman Gillian Bowler pending the conclusion of this selection process," Irish Life & Permanent said in a statement.

Most leading Irish financial institutions have replaced their top ranks after a string of scandals and a wipeout of shareholder value in the sector, leaving Bowler as the only top official from before the financial crisis still in her job.