Stockmarket jitters sees €175m drop in Hibernian pension investments

STOCKMARKET uncertainty has resulted in a €175.3 million drop in Hibernian Life and Pensions single premium investment sales in Ireland as investors turned to property.

The 70% drop in single investment sales from €249 million in 2002 was blamed by the Aviva Plc subsidiary on “continuing stockmarket uncertainty”.

Hibernian yesterday announced its new business results for the year ending December 31, 2003.

“Despite tough market conditions and heavy competition, the company moved up one place to number three in the life assurance league table (based on new business). With a market share of 11% Hibernian also remains the largest provider of life and pensions’ products through the broker market,” the company said.

The company reported new Annual Premium Equivalent (APE) of €115.4m for 2003 a 29% drop on 2002 sales of €162.3m, which included €38.8m of once-off SSIA business, resulting in a year-on-year drop of just 5% when SSIA business is excluded.

Hibernian said significant growth was evident in Hibernian’s single premium pension business, which showed an increase of 14% on last year to come in at €198m.

“This reflects returning confidence in the Irish business community and a new-found willingness to put money aside for retirement,” the firm said. The company said the 66% growth in protection business during 2002 to €14.9m continued during 2003 with €19.9 million of business being written up a further 33%.

The company also reported that overall annual premium pension sales rose slightly to €65.6m.

Hibernian parent Aviva Plc, Britain’s second-largest insurer by premiums, said its outlook for 2004 is encouraging as stock markets recover. Sales last year were little changed as alliances with European banks offset a drop in domestic business.

Life and pension revenue was £2.38 billion pounds, compared with £2.37bn in 2002. The London-based company said sales fell 13%.