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UK life insurance and pension sales suffer decline

Date: Mon, 14 Jul 03 Analysis

LONDON, UK - UK sales of life insurance and pension products fell 46 per cent in the first half of 2003, according to The Times.

The figures, reportedly based on business written by Ireland's major insurers between January and June, suggest that sales of lump-sum investments and pensions have been particularly slow, because of market uncertainty and lack of confidence in Personal Retirement Savings Accounts (PRSAs).

John Geraghty, chief executive of LA Brokers, an independent internet-based insurance broker, has suggested that larger insurers are now reacting to the slowdown by cutting sales targets, with some companies revising targets downwards by as much as 25 per cent.

The figures were compiled by Life Strategies, a Dublin-based actuarial company, and are said to currently be circling the UK market. The report collates sales figures from 90 per cent of Ireland's insurers.

'It is going to be a pretty grim year for the industry,' said Michael Culligan, director of Life Strategies.

Mr Culligan also warned that sales were unlikely to pick up significantly before the end of the year. He noted that, even if markets were to improve, the effect would not be felt immediately.

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