Insurer Standard Life, which operates two businesses in the Republic, saw sales here rise by 53 per cent to £836 million (€945 million) in the first six months of 2011.

Announcing its first-half results today the insurer condemned the Government's proposal to halve income tax relief from 41 per cent to 20 per cent in this year's Budget. It said the proposal "would effectively end the attractiveness of pensions."

Halving income tax relief in this year's Budget is 'game over' for private savers," said Brendan Barr, head of marketing at Standard Life Ireland. "How can we persuade people to pay into a pension if tax relief is offered at a paltry 20 per cent on contributions and 49 per cent tax is payable on retirement income?"

Domestic sales at Standard Life Ireland rose 59 per cent from £224 million (€253 million) to £359 million (€406 million) in the first half of the year.

Standard Life International - which provides products primarily to UK investors - increased sales by 49 per cent to £477 million (€539 million).

The insurer attributed the rise in sales to a number of factors including increased demand for retirement products and single premium bond sales.

"Customers' continuing priority is to entrust their pension/investment money to a provider they consider financially solid and safe," said Mr Barr. "Negative publicity and uncertainty surrounding the future of some of our competitors has increased Standard Life's attractiveness to security conscious investors."

The company's Irish businesses posted sales of £1.29 billion (€1.5 billion) in 2010 – up 51 per cent compared to the preceding year.

Standard's parent reported a bigger-than-expected 44 per cent jump in its half-year profit this morning, with cost cuts and stronger sales outweighing a big increase in investment in new products and technology.

The group, which is Britain's fifth-biggest insurer had a pre-tax operating profit of £262 million, up from £182 million a year earlier.

Additional reporting: Reuters