Bank of Ireland Life Reports Solid New Business Growth for half-year 2005
15-Sep-05Consumer confidence rekindles interest in investment products
Bank of Ireland Life (which incorporates New Ireland Assurance), today (15 September 2005), announced new business results for the half-year to 30 June 2005. Overall, new business sales (Annual Premium Equivalent - APE) have grown by 13.1% to €158.1m compared to the same period last year. Based on industry figures* this indicates that Bank of Ireland Life continues to gain market share, which currently stands at 24.4%, up from 24.1% at full year.
Single Premium Investment Business grew strongly, up 20% to €396 million, signalling an increase in investor confidence towards unit-linked products and a gradual shift from property investment.
Commenting on the results, Brian Forrester, Managing Director, Bank of Ireland Life said: "We are especially pleased with our success in the single premium investment market. Growing investor confidence, stemming from the recovery in the economy and stronger performance from stock markets, has helped to make unit linked products more attractive. Our SmartFunds range and especially our Evergreen Fund have proven very popular amongst our customers. We hope to continue to grow this market by introducing a range of innovative investment products such as, our recently launched Guaranteed Evergreen Fund and Trilogy fund options."
Increasing investor confidence is further indicated by recent research carried out on the Bank of Ireland Life SSIA customer base, which shows that equity SSIA holders are making higher average monthly contributions compared to cash SSIA holders. Over 70% of our equity SSIA holders are saving the maximum amount of €254 per month, compared to just 55% of cash accounts.
Bank of Ireland Life also enjoyed a strong performance in regular premium savings business with regular savings sales increasing by 24% to €7.7 million, reflecting a strong post-SSIA market recovery.
"We believe that the savings experience created by the SSIA scheme, and the current strong performance of equity SSIAs should develop a greater appetite for equity-based savings products in the future," Brian Forrester said.
There was also excellent growth in single premium pensions sales, which rose 57% to €165 million, with regular premium sales expected to increase significantly in the run-up to the self-assessment tax deadline. Bank of Ireland Life has maintained its target of selling 1 in every 4 PRSA policies in the market.
Brian Forrester continued, "The sale of pensions business is particularly tough this year as consumers top-up their SSIAs with any extra available income. We have performed well however, selling 1 in 4 PRSAs in the market. This is a very good result considering half-year PRSA sales in the market are actually down 37%, compared to the equivalent period to June 2004. Our excellent PRSA online information and administration service coupled with the strong long-term fund performance of Bank of Ireland Asset Management (BIAM) has enabled us to achieve this success."
"We hope Minister Seamus Brennan and The Pensions Board review our Bonus PRSA proposal submitted to them in July this year, as we believe its introduction would significantly contribute to raising national pensions coverage. Our Bonus PRSA proposal offers a clear incentive for long-term saving, provides periodic access to cash, and is deadline driven. By converting tax relief into a tax bonus, we believe it will demonstrate to consumers how the tax breaks on pension contributions can be twice as valuable as the Government SSIA bonus."
Brian Forrester concluded: "Our third quarter sales figures are very positive to date, and with our key pension sales period approaching, I am confident we can continue this momentum to year-end. Our combination of innovative products, effective distribution channels and a high quality advisory service, backed by the financial strength of Bank of Ireland makes us well positioned to continue to lead and grow in this market."
*Life Strategy Market Share figures, half-year 2005.
ENDS
Date: 15 September 2005
For reference contact:
Contact: Anne Mathews
Media Relations Manager
Group Corporate Communications
Tel. 01-6043836
Mobile: 087 246 0358
Contact: Laura Erskine
PR Manager
Bank of Ireland Life
Tel. 01 6172586
Mob. 086 856 2929
Bank of Ireland Life is a trading name of New Ireland Assurance Company plc. Bank of Ireland and Bank of Ireland Insurance & Investments Limited are tied agents of New Ireland Assurance Company plc. New Ireland Assurance Company plc. trading as Bank of Ireland Life is regulated by the Financial Regulator. Bank of Ireland Insurance & Investments Limited is a Multi-Agency Intermediary regulated by the Financial Regulator. Bank of Ireland is regulated by the Financial Regulator. Bank of Ireland Asset Management Ltd is authorised by the Irish Financial Services Regulatory Authority under the Investment Intermediaries Act, 1995. A member of Bank of Ireland Group.
| €m | 2005 | 2004 | Growth |
|---|---|---|---|
| Regular Premium Business | |||
| Regular Savings (SSIA) | 7.4 | 5.6 | +34% |
| Regular Savings (non SSIA) | 7.7 | 6.2 | +24% |
| Protection | 16.5 | 13.6 | +21% |
| Pensions | 70.4 | 70.7 | 0% |
| Total Regular Premiums | 102.0 | 96.1 | +6% |
| Single Premium Business | |||
| Investments | 39.6 | 33.1 | +20% |
| Pensions | 16.5 | 10.5 | +57% |
| Total Single Premiums(excl. Investment only) | 56.1 | 43.6 | +29% |
| APE | 158.1 | 139.7 | +13.1% |
Single premium new business investment figures include Combination Equity Bonds (CEBs) which is a Bank of Ireland Tracker Bond Product sold by the Bancassurance Sales-force
Figures exclude Bank of Ireland Life "Investment Only" Business, which is transacted through Bank of Ireland Asset Management.
Regular Premium savings figures exclude the Government portion of SSIA savings
Annual Premium Equivalent (APE) is the industry standard for calculating overall sales and is calculated by totalling regular premium sales and 10% of single premium sales