Investment bond new business sales slumped nearly 40% in Q1 2008 compared with figures from Q4 last year, ABI stats reveal.
Single premium sales fell to £6.463bn in the first quarter this year, a decrease of 38% from Q4 2008 and 27.7% from Q1 in 2007.
The ABI statistics also reveal falling new business across both the single and regular premium categories for individual and occupational pensions, individual and group protection, as well as offshore business and retirement income products for Q1 2008.
But the biggest drop was in investments and savings, which, as well as bonds, include endowment policies, child trust funds and insurance ISAs.
Total regular premium accumulation and protection new business in Q1 2008 was £1.355bn, a decrease of 2.1% from £1.384bn in Q1 2007.
Meanwhile, total single premium accumulation and protection new business in Q1 2008 was £16.089bn, a decrease of 15.5% from £19.037bn in Q1 2007.
Total decumulation new business was £3.351bn, a decrease of 3% from £3.453bn in Q1 2007.
There were stark drops for total single premium individual pensions new business, which stood at £4.677bn, a decrease of 12.4% from £5.340bn in Q1 2007.
In addition, total regular premium individual protection new business was £216m down 16.7% on Q1 2007.
But there was better news for pensions. Total regular premium individual pensions new business in Q1 2008 was £838m, an increase of 4.4% from £802m in Q1 2007, while total single premium occupational pensions new business was up 24% to £2.837bn on Q1 2007.
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