Bank of Ireland Life sales jump 21%
But the figures masked a slowdown in the second half as the division failed to match its impressive run in the first six months of 2004.
Bank of Ireland Life, which includes the New Ireland Assurance brand, said total sales for the year hit €284 million, up from €224 million the previous year. The sales increase was front-loaded, however, as the 43% hike in first-half sales was followed by a second half that was just 5% ahead of the corresponding period in 2003.
But the bank was upbeat and predicted it would eat up market share from competitors when industry figures are published shortly. Bank of Ireland Life managing director Brian Forrester said its market share was likely to be 2-3% ahead at between 24% and 25% for 2004.
He said the market was “very competitive” but the results showed a strong product line and distribution strategy, which sells through the bank’s branch network as well as through brokers and direct sales operations. “We believe that our increase in new business sales will be the strongest in the market,” he said. The 21% sales increase compares favourably with an estimated industry average of around 9%.
Pension annual premiums were 22% ahead at €13m, while sales of unit-linked lump sum investments almost doubled to €550m. “Pensions have grown to be a core element of our business and our success in both this market and with unit-linked investments demonstrates the clear strength of the products and services that we offer customers,” he said.
Contributions to Special Savings Investment Accounts (SSIA) also saw strong growth from €5m to €9.4m, which Mr Forrester said was down to savers taking greater advantage of the Government’s 25% top-up.
The bank also expected sales of stock market-based investments to benefit from improved investor confidence and that the pensions market would remain buoyant, driven by initiatives to boost pensions coverage.
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