AIB arm Ark Life reports 33% drop in sales for 2003

Laura Slattery

Ark Life, AIB's life assurance and pensions company, has reported a 33 per cent drop in sales in 2003, but yesterday said it had increased its market share.

Sales fell to €103.7 million in 2003, down €54.4 million from €162.1 million. New regular premium business halved from €114.5 million to €56.2 million.

Ark Life blamed the drop in sales on "exceptional items" that had boosted the market during 2002, including the final January tax deadline and the last minute rush to open a Special Savings Incentive Account (SSIA). Excluding SSIAs, sales in 2003 were €102.2 million, up from €99.9 million in 2002.

Mr Finn said the second half of 2003 gave a more realistic picture of the company's performance.

Ark Life grew by about 40 per cent compared to average industry growth of 17 per cent during this period. Market share increased from 9 to 12 per cent.

"Overall, this is a very strong performance given that Ark Life sold solely through the AIB branch channel and we are confident that we will build on this growth in 2004."

Ark Life said it had secured a 24 per cent share of the market for Personal Retirement Savings Accounts (PRSAs) and 30 per cent of employer designations to act as a PRSA provider to staff.

Mr Finn called on the Government to reward savers who transfer SSIA savings into a pension by providing extra tax relief or a lump-sum pensions top-up.

"It would also act as a measure to protect against overheating in the economy and higher inflation as SSIA savings become available in 2006," he said.

The sales figures were measured by annual premium equivalent (APE), which adds 10 per cent of the value of new single premium sales to the value of regular premium sales.