New business at Zurich grows by 6%

NEW business at the Irish division of international financial services group, Zurich, grew by 6% on a year-on-year basis in the first nine months of 2010.

The new figures from Zurich Life Ireland – formerly Eagle Star – show the company has continued to outperform the wider market here, with sales rising from €122.5m for the same period last year to €129.4m; while the average life market fell by 5% over the same timeframe.

The Irish subsidiary’s pension business also grew during the period, with the value of new business – on a like-for-like basis – up by 3% to €100.5m. New life assurance business was up by 17% at €29m.

Commenting on the results, Zurich Ireland chief executive, Anthony Brennan, said being part of the Zurich Financial Services family has proved a consistent help when acquiring new customers.

Meanwhile, the company added it has seen continued increases in its PRSA (personal retirement savings account) business, with new business levels up by 24%, year-on-year; and in its single premium pension business, which was up by 44%.

Overall its market share here has grown by 2% since the end of last year, to 18%.

The company’s European Manufacturing Hub – established last year – has also delivered strong cross-border business flows, with combined Irish and European new business from Zurich Ireland up 42%.

“Continued strong profitability, with new business margin of 2.6% of present value of premiums is expected to be received over the lifetime of the 2010 new business,” it said.

Meanwhile, ahead of next month’s budget, Zurich has called on the Government to take “a rational and equitable” approach to pensions tax relief. A cut to 33% (down from the current maximum of 41%) has been proposed already, but has met with some opposition.

“The people who will be hardest hit by the reduction in tax relief will be those middle-income earners who aspire to reasonable levels of personally funded pension,” Brendan Johnston, Zurich pensions director said.