Zurich Life increases its market share by 43%

FIRST quarter results from Zurich Life Ireland show that the company is outperforming the life insurance market here.

The market share of the firm, formerly known as Eagle Star Life, increased 43%, year-on-year, to 14% in the first three months of this year.

In summing up the results, that also showed a 3% increase in profitability (although actual profit numbers aren’t broken down for the Irish subsidiary), Zurich Ireland chief executive Michael Brennan said that their market share gains represented “a flight to quality”.

He said the company was attracting a healthy mix of first time pension investor custom and people switching from other providers.

“We continue to perform strongly in a challenging market environment and have achieved growth in market share across all main product categories and we’ve moved into at least a top three market position overall. It is particularly pleasing that the fall in new business has been off-set by improved profitability.”

While overall market share across life insurance and pensions was up 43%, Zurich has picked up a 38% share of the personal retirement savings account (PRSA) market.

Mr Brennan said that market leadership in the Irish pensions market has been the major factor in the company’s recent success.

Regarding the rising amount of pensionless people apparently turning off the idea of investing in a pension, he said: “A lot will depend on Government legislation. Asking people to put money aside for 20 to 30 years calls for attractive tax incentives. People have enough financial pressures at the moment, and need such incentives.”

Elsewhere yesterday, French insurance giant, AXA announced a €10 million investment in the Irish market with the launch of a new investment company, AXA Financial.

Based in Dublin and initially employing eight people, the company will offer a range of investment funds through financial advisers, that are not currently available in the Irish market.