Increasing consumer confidence in long-term saving is highlighted by figures released today by the Association of British Insurers which show a continuing increase in sales of life insurance and pension products. Sales of new life and pension business in the third quarter of 1996 were £4.5 billion, a rise of 41% on the same period in 1995, and the fourth consecutive quarter in which results have seen a year on year increase.

The figures show that:

• Premium income for new life insurance business, at £3.3 billion, rose by 48% over the same quarter last year. New single premiums increased by 54% to £2.9 billion and annual premiums, at £0.3 billion, were up 14%.

• Premium income for new individual pensions, at £1.2 billion, was up 24% on the same quarter last year. Single premiums rose by 25% to £0.9 billion, while new annual premiums were £0.3 billion, an increase of 21%.

Mark Boléat, ABI's Director General, said:

"These impressive figures are welcome news for insurers and the economy. They indicate that the up-turn in the sales of life and pension products which became evident towards the end of last year is gathering pace, and show growing consumer confidence and appreciation in the value of long-term savings, through the wide range of life and pension products."

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