Ireland: Hibernian maintains strong position at number three in Life & Pesnions market

Hibernian Life & Pensions today announced its new business results for the year ending 31 December 2004. Despite tough market conditions and heavy competition throughout most of the year, the company maintained its number three position in the life assurance league table with a market share of 11% (based on new business). Hibernian also remains the leading provider of retail life and pension products through the broker market.

The company reported new Annual Premium Equivalent (APE) of €125.6m for 2004, up 9% on the 2003 figure of €115.4m.

Significant growth was evident in Hibernian’s single premium pension business, which showed an increase of 11% on last year (2004: €218m, 2003: €198m). This significant boost in sales comes in the wake of a similar percentage increase in single premium pension sales last year. This strong year on year growth reflects the breadth and competitiveness of Hibernian’s pension product offerings. In particular the concept of fund manager choice, which Hibernian was first to introduce 10 years ago, still remains very popular. Splitting investments by fund manager has outperformed the average managed fund.

There was also good news in the single premium sales of lump sum investment business, particularly in Quarter 4 of 2004 when new business increased by 127% when compared with Quarter 4 2003. In a market that saw investment sales fall by 5% in the same period such growth indicates the commercial success and popularity of Hibernian’s new Guaranteed Fund. Launched last July, the Guaranteed Fund offers investors a five-year capital guarantee, while also benefiting from any growth in an actively managed portfolio of assets including equities, bonds and property.

Annual premium sales of life business saw a boost as a result of people topping up their SSIA contributions to the maximum amount. Top-ups increased from €1.4m in 2003 to €3.8m in 2004. Life AP sales increased overall by 14% to €25.8m (2003: €22.6m).

Hibernian Life & Pensions’ new managing director Tony O’Riordan said: "These are good solid results that we are very happy with. We are particularly pleased with the initial performance of our Guaranteed Fund, which indicates that investors like the security combined with the significant upside potential that this product offers".

"Having just taken over the reins as MD I am particularly pleased that we have consolidated our position at number three in the Irish life and pensions market. This has helped us strengthen our role as Ireland’s leading provider of retail life and pension products through the broker channel. And as such we will be participating in the current IFSRA consultation on broker commissions, where we will be strongly defending the importance of a robust broker sector in ensuring individuals and businesses get the benefit of high quality independent advice in the management of their financial affairs".

Hibernian Life & Pensions - 2004 new business