CANADA Life has reported a 15 per cent rise in new annual premiums to £17.4 million for 1996 and a 42 per cent rise in single premiums to £26.2 million.
Sales of pension products boosted the outcome for the year. In the annual premium or regular payment category, income from sales of defined contribution pensions rose by 30 per cent to £7.7 million. Defined benefit premiums were 26 per cent higher at £950,000. Other life assurance products, mainly protection and savings products, produced premium income of £8.7 million, an increase of 3 per cent.
In the single premium or lump sum payment category, income from pension products was 79 per cent higher at £11.8 million. Single premium income from sales of other life assurance products - mainly investment products such as unit linked bonds and tracker bonds - was 22 per cent ahead at £14.4 million.
Using the industry measure for sales growth - the annual premium equivalent calculated by adding total annual premium income to 10 per cent of single premium income - Canada Life recorded new business growth of 18 per cent in 1996. Group assets increased by 16 per cent to £800 million.
In 1995, the company had 7.5 per cent of the life assurance market based on the annual premium equivalent measure. A spokesman said Canada Life's share should be higher for 1996. But he cautioned that the introduction of some new savings products into the market last year expanded the overall size of the market. The new savings products, largely types of personal equity/investment plans, had not been offered by Canada Life, he explained.
The company, which has operated in the Irish market since 1903, took over Abbey Life in 1992. Canada Life continued to look for suitable acquisitions in the Irish market he said.
Canada Life, which has 3i0 employees and 135,000 policyholders in Ireland, attributed the growth in pension products sales to "strong unit linked pension fund performance and the popularity of with profit guarantees".
General manager Mr Bill Acton forecast that, in a low interest rate environment, deposit holders would continue to move into investment products which offer the potential for higher returns.
