Zurich Life sees new business levels fall by 14%

New business levels at financial services provider Zurich Life (Ireland) fell by 14% to €153.6m last year — higher than the average fall of 8% for the industry.

The company — which formerly traded as Eagle Star — said its strong profitability levels remain and that it has retained its core market share and pricing discipline.

“As expected, 2011 was another tough year for the life industry in Ireland, with aggressive competition for all business, including broker reports of their customers being targeted by banks,” added Anthony Brennan, Zurich Ireland’s chief executive.

The new business annual premium equivalent (APE) figure consisted of a mix of new pensions and new life assurance business. New life business (also incorporating serious illness cover and mortgage protection) was down by 4%; while pensions new business fell by 16%.

Zurich Ireland’s single premium life new business was up by 8%, to €126.6m, compared to an average fall of 8% for the wider industry.

The company also said that it remained “competitive” in the group risk market, with a particularly strong performance evident during the second half of the year.

Meanwhile, Zurich’s cross-border operation — which distributes specific financial products to Britain, Italy and Germany — has continued to produce “significant” levels of new business.

Zurich has also welcomed the Government committing to talks with pension providers on the future pension landscape in Ireland.

“Consumers have a lot less disposable income today to fund an adequate pension, and with consumer confidence at very low levels, it is crucial that tax reliefs for pensions aren’t reduced to avoid a future pensions crisis,” Brendan Johnston, Zurich Ireland’s pensions director, said.