Sales at Scottish Provident up 42%

Scottish Provident Ireland, the pensions business that has been put up for sale by Abbey National along with a number of other international operations, recorded sales growth of 42 per cent last year, boosted by strong demand for lump-sum investment products.

The company has reported sales of €33.2 million for 2002 on an annual premium equivalent basis. Within this, single-premium business grew by 62 per cent to €195.7 million, while new regular premiums business rose by 22 per cent to €13.6 million.

In a statement, Scottish Provident Ireland said with-profits products, which traditionally appeal to more conservative investors, were a particular driver in the 2002 performance.

The statement noted that overall numbers had not been "clouded" by sales of Special Savings Incentive Accounts (SSIAs).

While the company offered an SSIA, the product was not actively marketed and made a minimal contribution to last year's accounts.

Scottish Provident Ireland's head of product development, Mr Duncan Roberston, said management was "very happy" to have grown the business at such an uncertain juncture.

"We're quite keen to emphasise that it's business as usual", he said, declining to put a time-frame on finding a purchaser for the business.

The firm will continue to introduce new products and build value until a sale is achieved, according to Mr Roberston.