Zurich bucks the downward trend

ZURICH Life Ireland continued to buck the downward trend in the Irish financial services market last year by boosting its new business value by 1% — to €177.9m — amid strong competition.

The company — which formerly went under the Eagle Star trading name — said its 2010 growth was seen both via its pensions and life insurance offerings. The growth also compared favourably with an average fall of 6% for the wider market as a whole.

New life business was up by 16% — compared with a market average of 8% — to €38.7m; while headline new pensions business value was down by 3% (to €139.1m); albeit against an overall market fall of 10%. Single premium pensions business was up by 22% and Zurich Ireland’s share of Ireland’s total pensions market was up by 1% to 19%. Its share of the life insurance market also rose by 1%, to 13%. The company’s total share of the Irish financial services market rose 2% last year to 18% — with profitability continuing with a new business margin of 2.6% of present value of premiums expected to be received over the lifetime of 2010 new business.

“In a tough market, we outperformed the market average for new business, providing the leading customer service as voted for by independent brokers again in 2010,” said Zurich Life Ireland chief executive Anthony Brennan.

The company also continued to strengthen its PRSA (personal retirement savings accounts) business during the year — with annual premium new business up by 6% and single premium business rising by 7%.

Meanwhile, Zurich’s cross-border trade was boosted by growth at its European manufacturing hub, which it established here in 2009. Total new business from this division — which sells products produced here to Britain, Italy and Germany — more than doubled to €82.3m for the year.

However, Zurich’s management in Ireland is less confident about prospects for 2011.

“The trend in the Ireland Life market over the last six months has been one of an overall decline in sales, with the exception of a spike in pensions business, linked to the December budget announcements. I expect 2011 to be a very challenging year for the industry, with sales under pressure and margins being squeezed,” said Mr Brennan.