Market uncertainty hit the sale of single premium products at Hibernian Life & Pensions in the nine months to the end of September. Sales fell to £138 million sterling (€219 million) from £230 million a year earlier according to figures released yesterday by parent group Aviva, the former CGU.
On an annual premium equivalent basis - which comprises regular premium sales plus 10 per cent of single premium sales - overall sales rose 10 per cent in euro terms.
In sterling terms annual premium equivalent sales were £85 million . The euro figure was not disclosed.
A company spokesman said that, in the current climate, people were leaving their money in the bank and waiting for the market to turn. But he was confident the Irish operation was holding its own against rivals.
Mr Richard Harvey, Aviva group chief executive, said: "Our outlook for long-term savings markets for the rest of the year remains cautious as we expect consumer confidence to continue to be affected by economic conditions and turbulent equity markets."
Mr Ian Veitch, market and product development director, life and pensions, said pensions business in Ireland was holding up in the run-up to the tax deadline at the end of this month.
Regular premium pension sales were ahead 22 per cent to £32 million in the nine-month period, though single premium pensions business fell 29 per cent in a difficult investment market, compounded by uncertainty over changes in the pension regime in Ireland.
Total regular premium income rose 48 per cent to £63 million, helped in large part by the Special Savings Incentive Scheme, which added one-off sales of £23 million before it closed to new entries last April.
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