Ireland: New business sales underpin solid platform for growth at Hibernian

Hibernian today (Tuesday 7 February) announced new business results for its life and pensions business for the year ending 31 December 2005. The results follow Hibernian’s successful completion of a new bancassurance joint venture with Allied Irish Banks (AIB) on 27 January 2006, and demonstrate a growth in market share from 10% to approximately 16% through the acquisition of AIB’s life insurance subsidiary Ark Life. Total sales on an annual premium equivalent (APE) basis for the combined entities in 2005 were €254.3m.

Tony O’Riordan, managing director, Hibernian Life & Pensions said: “These results, together with the recent completion of the joint venture with AIB, provide an excellent platform for growth for our business and consolidate Hibernian’s position as one of the major players in the life and pensions market. The joint venture complements our highly successful intermediary distribution network through providing access to AIB’s bank distribution channel. This increased scale gives us the ability to further develop attractive product choice and investment fund options for our customers and distribution partners. I am excited by the opportunities which this joint venture brings and look forward to a very positive future for our business.”

Within Hibernian Life & Pensions, which operates primarily in the independent broker channel, highlights included an exceptional performance in life single premium sales in 2005, up 152% to €199m (2004: €79m) spurred on by resumed investor confidence in stockmarkets and the success of Hibernian’s Guaranteed Fund. New single premium pension sales were up 57% to €344m (2004: €219m) and benefited from a significant number of large contracts across all categories of pensions and the attractiveness of Hibernian’s choice of fund options and managers.

In aggregate Hibernian Life & Pensions achieved a 17% increase in total sales to €146.7m (2004: €125.6m), with pensions APE up 13.9% to €104.7m (2004: €91.9m).

At Ark Life, which distributes products through AIB’s branch network throughout Ireland, total pensions sales grew 19% to €51.4m (2004: €43.2m). Regular premium saving sales were also up very strongly with a 71% increase to €12.5m, boosted by the launch of the VIP savings plan and increased SSIA contributions. On an APE basis Ark Life’s total sales were €107.6 million (2004: €100.2 million), an increase of 7%.

Hibernian Life & Pensions and Ark Life
New Business Sales, €m:

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Press contact:
Marie-Thérčse Culligan
Group Media Relations Manager*
Hibernian Insurance
Tel: 617 8164 / 087 2367008
Email: marietherese.culligan@hibernian.ie

*Kela O’Riordan is on maternity leave

Notes to editors:

• Hibernian is Ireland’s largest composite insurer, ranked first for general insurance and top three for life and pensions
• Aviva is the world’s sixth-largest insurance group based on gross world-wide premiums and market capitalisation (at 31 December 2004); it is one of the leading providers of life and pensions in Europe and has substantial businesses in other markets
  Aviva employs 60,000 staff globally
• Hibernian news releases are also available on www.hibernian.ie