New business falls at Zurich Life Ireland

RENEE JONES

ZURICH LIFE Ireland posted an €8.8 million decline in new business in life and pensions during the first quarter this year.

The insurer, formerly known as Eagle Star Life, saw an 18 per cent drop to €40.2 million in its total new business annual premium equivalent (APE), a method of calculating new business levels in the industry, compared to 2008.

Zurich Life Ireland chief executive officer Michael Brennan said the company had still outperformed the sector.

“The life insurance market in Ireland as a whole has been hit by the deteriorating economy, resulting in a 43 per cent fall in new APE in the first quarter of 2009.

“Zurich Life has been less impacted with an 18 per cent fall because of our strength in the pension and protection markets.”

The group also announced its market share increased by 43 per cent to 14 per cent compared to the same period last year.

The insurer now holds 38 per cent of the PRSA market, while protection new business APE also jumped 27 per cent.

“We continue to perform strongly in a challenging market environment.

“Zurich Life has achieved growth in market share across all main product categories, and we have moved into at least a top three market position overall,”he said.

“It is particularly pleasing that the fall in new business has been offset by improved profitability.”

Meanwhile, its parent company, Zurich Financial Services Group, reported a 40 per cent decline in business operating profit to US$1.1 billion in the first three months of this year.

The group’s net income also decreased by 75 per cent to $362 million during the period.

Zurich’s chief executive officer James J Schiro said he remained confident despite the recession.

“We have shown continual quarter-on-quarter improvement since the financial crisis began, and remain confident in our strategy despite the ongoing financial turmoil.

“Though we anticipate 2009 to remain challenging, I am pleased with our ability to maintain our strong solvency ratio and add to shareholders’ surplus while capitalising on market opportunities that emerge.”