NEW Ireland, the pensions and life assurance company, has produced strong annual new business figures, showing a growth in annual premiums of 18 per cent, and a jump of 31 per cent in single premiums. Over £1.7 billion is under management within the group, the company said.

We've had outstanding figures for the last eight years," the company's managing director, Mr Jack Casey, said, "and none more so than 1996."

In annual premiums, life assurance grew by 26 per cent to £10.7 million, and pensions rose 18 per cent to £11.1 million, the company said. In single premium business, pensions rose by 41 per cent to £102.2 million, while life assurance dropped by 6 per cent to £18.2 million.

Since 1988 New Ireland has recorded a steady increase in annual premiums. That year, the company had £5.2 million in new annual business, rising by 43 per cent to £7.4 million in 1989. By 1992, new annual premium business had reached £13.1 million, the company said, rising to £18.4 million in 1995.

Company strategists said yesterday that, although this pattern came against the background of a generally favourable economic climate, other companies had found their annual premium business declining at various times.

"What we did was restructure the company. We made it a lot more flexible, a lot less bureaucratic, and we made sure that the people selling our products were experienced," one executive said.

Mr Casey said he was particularly gratified that the past year's growth had been in the company's core areas of protection and pensions.

"Looking forward, I see a number of positive factors to indicate that New Ireland can build on last years success during 1997," be added. "With 6 per cent economic growth forecast and the increasing trend in employment figures, the outlook remains good for the pensions market.

"I would be extremely disappointed if I thought we weren't going to be successful in 1997," he said.

Part of the company's strategy for this year would be to offer further products to cover critical illness, as well as more tracker bonds, he said.

New Ireland offered its first tracker bond - a derivative which allows customers to invest in the Stock Exchange but guarantees a basic return - in November. The company plans to offer another later this month, and then a further three before the end of 1997.

Mr Casey said the recent ESRI report on pensions coverage in Ireland clearly demonstrated that there was room for increased sales of pensions. New Ireland's co-operation deal with Friends Provident, which allows each company's pension policyholders to invest in the other's managed funds, confirmed his company's commitment to innovation in the market, he added.

New Ireland, whose parent company is the giant French assurance group AXA, is well placed to face increased competition in the life and pensions market, Mr Casey contended.

"I think there are too many players in the life assurance business in Ireland, he added. "I think there will be rationalisations."

He pointed out that a number of mergers had already occurred, and that any company in the sector with less than 5 per cent market share was unlikely to be able to stay operating in the long term.