EAGLE STAR Life's half-year results show strong sales of pension and life products.

New single premium pension sales increased by 61.2 per cent to £80.2 million (€101.83 million) in 1999 from £49.75 million (€63.16 million) for the same six-month period last year.

At the same time, new annual premium pension business rose by 29.7 per cent to £10.8 million from £8.33 million during.

The insurer attributes increased sales to the healthy economy, increased employment and rising salaries as well as strong growth in corporate sector profits. Eagle Star's emphasis on the information technology sector has also contributed to the growth in new business. Eagle Star expects the increase in new pension sales to continue, thanks to Finance Act changes increasing tax limits for the self-employed and options available at retirement.

The life area performed well, with an increase of 47.6 per cent for new single premium business to £19.54 million from £13.24 million during the first six months of last year. New annual premium life business was up 11.5 per cent to £3.6 million from £3.23 million.

This performance indicates that investors continue seeking higher returns, despite increased risks, in the low interest rate environment, says Eagle Star Life.