New business sales at life and pensions group Hibernian jumped 80 per cent in the first quarter of 2007 after the company's fortunes were boosted by a full three-month contribution from its joint venture with AIB.
Figures released by Hibernian's parent company, the UK insurer Aviva, show that total new business sales came to £453 million (€665 million) in the first three months of the year, up from £258 million (€379 million) in the first three months in 2006.
Contributions from new business increased from £5 million to £6 million year-on-year. However, new business margins were squeezed, falling from 1.9 per cent to 1.3 per cent.
Sales through AIB's Ark Life business, with which it formed a joint venture in February 2006, amounted to £206 million in the first quarter of 2007, up from a two-month contribution of £93 million in the first quarter of 2006.
Aviva said these sales were made up of £143 million of life sales, consisting mostly of single-premium bonds, and £63 million of pension sales.
Hibernian's sales through its network of brokers grew 53 per cent to £247 million, up from £165 million in 2006. Life sales were 21 per cent higher at £76 million, compared to £64 million in the first quarter of 2006. The company said there were strong sales of its secure capital fund and geared property fund. Pension sales were £171 million, up from £101 million in 2006.
Trade union Amicus has reached agreement in principle with insurance group Hibernian on a new pension deal for its staff. It is understood the deal will see the replacement of an existing defined contribution scheme with a new hybrid model incorporating elements of a defined benefit arrangement. The outline agreement is expected to be revealed to the Association of Pension Lawyers today.
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