Healthy demand for new life insurance and pension policies continues, according to figures released today by the Association of British Insurers.

Sales of new life policies, individual pensions and collective investment schemes in the third quarter of the year were £7.5 billion, up 8% on the third quarter of 1997.

The third quarter figures show that:

• Premium income for new life business was £4.7 billion, a rise of 16% on the same period last year. New annual premiums at £0.4 billion rose by 8%; single premiums at £4.3 billion were 16% higher.



• Individual pension new premiums were £1.5 billion, a 3% fall on last year. This small decrease largely reflects a change in the recording of data. New single premiums were £1.2 billion, down 4%, while new annual premiums at £0.3 billion remained virtually unchanged.



• The total invested in collective investment schemes was £1.4 billion, down 4% on the same period last year. Of this, £1 billion was invested in PEPs, with the remainder in straight unit trusts.

Mark Boléat, ABI's Director General, said:

"With signs of an economic slow down, the steady demand for new life and pensions products is very welcome. Increasing uncertainty about the economy, makes it more important than ever for people to save for their future, and the challenge for the industry remains for it to provide value for money and flexible products to meet the demands of its customers."

Notes

1. Full details of the figures are attached.



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