Life and pensions new business sales reached a record level of £15.5bn in 2006, according to figures from the Association of British Insurers.
For the first time, annual premium equivalent (APE) sales broke through the £15bn barrier, reaching a total of £15.5bn - an increase of 29.5% from £11.9bn in 2005.
Total regular premium new business in 2006 was £5.9bn, an increase of 17.5% on 2005, while total single premium new business was £96.1bn, an increase of 38% on 2005.
Individual pensions regular premium new business performed strongly, rising by 45% from £2.1bn in 2005 to £3bn in 2006, while single premium individual pensions new business rose from £12.2bn to £18.8bn.
Group pensions regular premium new business fell from £766m in 2005 to £753m in 2006, while single premium group pensions sales rose from £6.5bn to £8.1bn.
New business sales for individual protection regular premiums fell from £1.05bn to £1.03bn, while individual protection single premium sales dropped from £1.6bn to £1.4bn.
Stephen Sklaroff, director general of the ABI, says: “The government’s A-Day reforms have helped to stimulate growth in personal and group pensions, encouraging many more people to begin building up funds for their retirement. The challenge now is to get the design of the new personal accounts right. Changes will be needed if good existing pension schemes are not to be undermined.”
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