Zurich boosts market share by 46%

A GOOD showing in an otherwise declining pensions market has boosted Zurich Life Ireland’s (formerly Eagle Star) market share by 46% to 16%, the company said yesterday.

It also used the publication of its results for the first nine months of the year to call on the Government to keep tax relief on pensions at the marginal rate.

“The implications of reduced tax relief will be a dramatic reduction in the amount saved for pensions, which is very serious given the relatively immature position of Irish pension provision,” said Zurich Life’s pensions director, Brendan Johnston.

While the overall Zurich Financial Services group posted a 24% year-on-year decline in net profit to $2.2 billion (€1.5bn) for the nine months to the end of September, the Irish division continued to outperform the local market.

As well as the year-on-year market share increase, Zurich Ireland saw new business levels relating to single premium pensions shoot up by 25% to a value of €505.6m – compared to €403.6m for the same period last year – against an overall market decline of 11%.

New business levels for individual protection insurance (life and serious illness cover) rose by 14% to €15.2m; while the company grew further in the PRSA (personal retirement savings accounts) sector, now controlling 44% of the Irish market.

Annual premium equivalent (APE) was down by 5%, against an overall market decline of 35%.

Zurich Ireland’s new chief executive, Anthony Brennan said that trading conditions remain tough, but that the company is well-positioned to maintain its momentum.

“All the indications point to another challenging year ahead, but I’m confident that our strengths position us well to continue to outperform,” he said.