There has been steady growth in life and pensions sales during the first quarter of 2007, according to new business figures from ABI members.
Total APE new business was £4.115bn, an increase of 21.9% from £3,377bn in Q1 2006.
One of the top performers was individual pensions business with APE sales in Q1 2007 of £1.350bn, an increase of 35.8% from £994m in Q1 2006.
In the single premium area, pension, annuities and income drawdown sales were also strong up 64pc in total compared to the same period in 2006. Savings & investments were up 28.1% although they fell 14.5% for new regular premium sales.
However, stakeholder products performed poorly in both regular and single premium areas with sales down 31.5% and 30.9% respectively.
Stephen Haddrill, director general of the ABI, said: “Steady increases in sales of pensions, protection, savings and investment products by insurance companies over the last few years shows that consumer confidence in our sector is recovering.
“These figures show that the long-term life and savings market in the UK remains in good health. The ‘A-Day’ reforms of April 2006, when the pensions tax regime was simplified, led to a significant increase in sales in the second and third quarters of 2006, as expected. It is good news that since that surge, year-on-year sales have remained at higher levels than before A-Day.”
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The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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