Life and pensions new business – steady growth continues

Latest new business figures from the ABI (Association of British Insurers) show steady growth in life and pensions sales during the first quarter of 2007.

Total APE new business was £4.115bn, an increase of 21.9% from £3,377bn in Q1 2006. Again, individual pensions business performed well, with APE sales in Q1 2007 of £1.350bn, an increase of 35.8% from £994m in Q1 2006.

Stephen Haddrill, Director General of the ABI, said: “Steady increases in sales of pensions, protection, savings and investment products by insurance companies over the last few years shows that consumer confidence in our sector is recovering.

“These figures show that the long-term life and savings market in the UK remains in good health. The ‘A-Day’ reforms of April 2006, when the pensions tax regime was simplified, led to a significant increase in sales in the second and third quarters of 2006, as expected. It is good news that since that surge, year-on-year sales have remained at higher levels than before A-Day.”