Life and pensions new business sales rose by 30% to £3.8bn in the third quarter of 2006, according to figures from the Association of British Insurers.
Sales of individual pensions rose from £810m annual premium equivalent (APE) in quarter three 2005 to £1.2bn in quarter three 2006, while sales of group personal pensions rose from £269m to £356m.
Total regular premium new business in quarter three 2006 was £1.3bn, an increase of 16% on quarter three 2005, while total single premium new business was £24.5bn, an increase of 39% on 2005.
Chris Kenny, director of life and pensions at the ABI, says there is some transferred business within the figures and the association if working to improve its data to capture this better.
He adds: “But we shouldn’t forget that such market movements are often a sign of consumers seeking the best returns and service. It’s important that the Financial Services Authority’s (FSA) distribution review addresses concerns about business models, but without reducing this healthy competition.”
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