INSURANCE COMPANY Eagle Star announced a 6 per cent reduction in new business for the first quarter of the year.
Despite the fall off in new business, the company, Eagle Star Life, owned by Swiss-based Zurich financial services group, said it had outperformed the Irish market.
"In a challenging period where the overall market fell 29 per cent, compared to the first quarter of 2007, Eagle Star continued to outperform the market with new business of €48.9 million," the company noted.
This compares to €52.2 million for the first quarter in 2007. In the pensions market, the insurance firm indicated that total pensions annual premiums of €24.8 million were up 14 per cent as against the first quarter of 2007.
Pensions single premium business also increased by 16 per cent to €141.5 million.
The firm estimates it holds a 22 per cent share of the overall PRSA market.
However, it said that the end of the Government SSIA scheme saw life premiums decline to more realistic levels, while the reluctance of single premium investors to re-enter the markets in significant numbers saw single premium figures fall substantially.
In its results, Zurich said that its new life business margin after tax in Ireland fell from 23.8 per cent to 20.4 per cent in the three months to March 31st.
New life business value after tax in Ireland fell from $17 million (€11 million) to $15 million (€10 million). Business operating profit in the quarter was $6 million (€4 million), down from $15 million for the same period in 2007.
Zurich said group profit increased 2.9 per cent in the first quarter, reporting net income increased to $1.43 billion from $1.39 billion a year earlier.
Gross written premiums rose 5 per cent to $14.1 billion, in line with analyst estimates. Zurich, which earns more than half of its operating profit through property and casualty insurance, is sticking with its "bolt-on" acquisition strategy of the last 18 months as that division's income slows amid "difficult" financial markets.
Chief executive James Schiro reiterated a goal of $2.4 billion in cost savings and underwriting efficiencies through 2010 after cutting 400 US jobs last month. (Additional reporting by Bloomberg)
