The total investment in the pension fund and life insurance industry continues to climb the Associat...
The total investment in the pension fund and life insurance industry continues to climb the Association of British Insurers has revealed in figures issued today.
The association reported that £500bn was invested in insurance-administered individual and occupational pensions in 1999 representing an increase of 18% on the previous year. A further £235bn was invested in life insurance, up 12% on 1998.
The figures compiled by the government actuary's department for Insurance Trends, the ABI's quarterly research review show £320bn was invested in individual pensions - up 13% in real terms on the previous year. Other statistics show £180bn was invested in insurance-administered occupational pensions schemes, up 27% and £235bn invested in life insurance products, a rise of 12% on the previous year.
Between 1987 - the year the stock market crashed -and 1999 funds invested in insurance products grew by nearly 220% in real terms from £290 billion to nearly £915 billion.
Increasing amounts of that money was invested in individual pensions, says the ABI which, at £320 billion, rose by over 550%. During this period the percentage of pension funds invested in insurance administered individual and occupational pensions rose from 21% to 40%. The personal sector wealth held in insurance products increased from 20% to 29% over the same period.
ABI director general Mary Francis said: "These figures emphasise the vital role insurance plays in underpinning people's financial security illustrated by the fact that 30% of all personal sector wealth is now invested in insurance products."
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