Hibernian Life and Pensions, the Irish susidiary of UK insurance giant Aviva, has posted a 17 per cent increase in sales for last year, boosted by a strong performance in single premium products.

The insurer reported sales of €146.7 million for the year, up from €125.6 million in 2004. Within this, pension sales rose by nearly 14 per cent to €104.7 million on the annual premium equivalent (APE) basis. This APE measure reflects sales of regular premium products plus one-tenth of single-premium sales.

Hibernian reported a 57 per cent increase to €344 million in new single-premium pension products, but growth was weaker in annual products. The firm said it had won "a significant number of large contracts across all categories of pensions".

Within insurance, sales of single premium life products were up by 152 per cent at €199 million.

Tony O'Riordan, managing director of Hibernian Life & Pensions, said strength in equity markets had injected new confidence into the single premium market.

He hoped this confidence would last as special savings incentive accounts (SSIAs) begin to mature later this year.

"We are in the process of designing products and product features suitable for the SSIA maturity," said Mr O'Riordan. "We've got to make sure we're in a position to attract that money."

Late last year, Hibernian, the State's third-biggest insurance company, formed a new joint venture with AIB through the acquisition of AIB's Ark Life.

Mr O'Riordan said this deal, which was completed at the end of last month, would allow for "increased scale" and new product launches. The combined entity has 16 per cent of the market, compared to the 10 per cent Hibernian previously held.

- (Additional reporting, Reuters)