Eagle Star has reported 37 per cent growth in new business sales, which increased to €168 million last year. This was ahead of the market average of 21 per cent, and has led to a 12 per cent increase in the company's market share, according to industry figures.

New pensions sales at Eagle Star Life rose 30 per cent to €108 million, while life sales grew 51 per cent to €60 million. The sales are measured on an annual premium equivalent (APE) basis, which comprises the value of new regular premium sales plus 10 per cent of the value of single premium business.

New single premium life business at Eagle Star rose 133 per cent to €309 million, with the company attributing its growth to special savings incentive account (SSIA) holders reinvesting their matured funds.

"With some imaginative thinking, hopefully the Government will increase pensions coverage by taking advantage of this wave of wealth," said Eagle Star Life pensions director Brendan Johnston.

Eagle Star's investment division now has €7.2 billion in funds under management, with €4 billion of this held in pensions assets.

The company has a 16.5 per cent share of the market for personal retirement savings accounts (PRSAs), a new kind of personal pension product launched in 2003 with the aim of increasing pensions coverage.

Eagle Star said it supported the idea of automatically enrolling employees into pension schemes with the ability to opt out.