Life and pensions new business for the first quarter of 2006 gained the highest level ever recorded for overall sales at £3.3bn annual premium equivalent (APE), according to the Association of British Insurers (ABI).
The latest figures reveal overall life and pensions new business increased by 29.2% from Q1 2005 to £3.3bn APE, the highest level of new business in real or nominal terms ever recorded in a single quarter by the ABI.
Total regular premium new business was £1.3bn, an increase of 13.8% from the same quarter the previous year, while total single premium new business was £19.96bn, an increase of 42.2%.
Meanwhile, single premium individual pensions new business did particularly well, up 49.1% on the same quarter in 2005 at £3.84bn.
Of this, new sales accounted for £2.3bn (59%), transfers accounted for £1.4bn (36%) and rebates accounted for £198m (5%).
Regular premium individual pensions new business stood at £624m, an increase of 28.9% on Q1 2005.
On the downside, regular premium group protection new business fell 15.6% from Q1 2005 to £92m, while single premium individual protection new business fell 19.1% to £336m.
Single premium pension annuities and income drawdown new business also fell 7.2% to £2.09bn, and regular premium group pension group new business fell 4.7% to £177m.
Chris Kenny, the ABI’s director of life and pensions, says: “These figures show that the insurance industry has risen to the challenges of A-Day. It has delivered for customers while adapting complex systems to implement the new tax regime.”
He believes the pensions industry can and should be used both to improve pension saving for lower and middle income groups, and to build the existing market which is beginning to thrive again.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
Latest news and analysis
Drip-feed. Blend. De-risk
£92bn transferred since 2015
Achievements, charity work and other happy snippets