New business at the Irish arm of Swiss financial services company Zurich dipped 11 per cent to €83.8 million in the first six months of the year.

This compared to a 3 per cent rise across the overall market.

Pension sales were particularly weak, with Zurich Life's new business annual premium equivalent (APE) declining 14 per cent to €64 million.

New sales of life products - including protection, regular premium savings and single premium investments - were slightly lower at €19.8 million.

Chief executive Anthony Brennan described the Irish market as “tough”, and said a number of Zurich Life’s competitors which are attached to banks are being prepared for sale, and this is driving aggressive pricing for new business.

“We have maintained our core pricing discipline and focused on writing profitable business to ensure our long term financial strength,” he said.

At the end of June, Zurich’s market share, excluding investment-only business, stood at 16.7 per cent.

Mr Brennan said regular premium sales are slowing across the market, particularly in pensions. “This is due to the weakness in the economy, the recent introduction of the pension levy and the continued speculation about future tax relief,” he said.

Zurich Life pensions director Brendan Johnston warned that any further cuts to income tax relief on pensions would “take pension saving off the agenda for both current and new pension savers”.