Growth in pensions and life insurance

Sales of life insurance and pension products have risen.

10:35 26 August 2005

Sales of life insurance and pension products have risen, with first half sales above industry predictions.

The Association of British Insurers (ABI) announced yesterday that sales increased by almost 13 per cent last quarter, compared to the same period last year.

First half growth stands at a higher than expected nine per cent. This amounts to pension and life insurance sales of 5.5 billion for the first six months of 2005.

Fox-Pitt analyst Mikir Shah told Reuters that the gap between actual and expected growth may be attributable to people switching their pensions between suppliers.

"It is good news for savers and the insurance industry that overall savings figures are up," said ABI director Chris Kenny.

However, there are still concerns about levels of saving in the UK. The ABI has also reported disappointing sales of stakeholder savings schemes since their launch last April.

"We must not be complacent," Mr Kenny concluded.