AIB's life assurance and pensions arm Ark Life has reported a slight drop in total sales for 2004 to just over €100m, compared with €103.7m in 2003.
These figures are for sales as measured by annual premium equivalent (APE), the standard industry measure.
Sales of new regular pensions rose from €29.7m to €36.2m, while new single premium pension sales almost doubled to €70.2m.
New regular premium business was up from €56.2m to €60.4m, but sales of single premium investments fell from €475m in 2003 to €398m.
Ark Life managing director Billy Finn said the performance reflected its focus on the pensions market. He said the main reason for a fall in its investment business was its decision to withdraw from the guaranteed bond market in the middle of the year. Mr Finn said that in the face of continued low interest rates, this business did not offer investors an adequate return.
Ark Life's PRSA business was up 71% at €21m, and Mr Finn said it now had almost a quarter of the market. But he said PRSA sales were not achieving the levels which would enable the Government to meet its targets for pensions coverage.
'The introduction of other types of savings products which would encourage long-term savings should be considered by the Government,' he said, adding that many people were not looking beyond their SSIA special savings scheme products. He called for some sort of tax incentive to encourage saving in the Finance Bill, perhaps along the lines of the UK's Investment Savings Accounts. These allow savers to build up an investment free from income and capital gains taxes. Mr Finn said Ark Life would be making submissions on this issue to the Department of Finance.
