Premium investments surge boosts Bank of Ireland Life

New business sales at Bank of Ireland Life grew by 13 per cent to €158 million over the first half of 2005, increasing the company's market share by a small margin.

Bank of Ireland's life assurance arm, which also includes New Ireland Assurance, reported strong sales in its single premium investment business, which grew 20 per cent to €396 million compared with the first six months of 2004.

The bank said this signalled increased investor confidence in relation to unit-linked products and a gradual shift away from property investment.

Regular savings sales increased 24 per cent to €7.7 million, which Bank of Ireland Life said marked a strong recovery in the market following the success of Special Savings Incentive Accounts (SSIAs).

"We believe the savings experience created by the SSIA scheme and the current strong performance of equity SSIAs should develop a greater appetite for equity-based savings product," said Brian Forrester, managing director of Bank of Ireland Life.

The value of single premium pensions in the first six months of 2005 was €165 million, an increase of 57 per cent on the same period the previous year.

Sales of regular premium pensions were flat in the first half of the year. However the bank said these sales were expected to increase significantly in the run-up to the self-assessment tax deadline.

Mr Forrester said pensions business was particularly tough this year as consumers use any extra available income to top up their SSIAs.