A RADICAL review of operations at Lifetime Assurance is expected to lead to job losses, new products and a reduction in charges for customers.
Reporting a 6 per cent fall in annual premium income to £14.1 million for 1995 and a halving of single premium income to £24 million, the Bank of Ireland owned company said it was "in the process of a radical review of our products and service proposition to take account of changes in the market".
Head of marketing Mr Mark Mortell confirmed there would be a "revamp of structures". He declined to comment on redundancies at the company, which employs 300 people. But costs would have to be reduced to provide better value to customers, he said.
"Changes will reflect customer based research. We plan to start to introduce new products in the next six weeks to two months, starting with new life and savings products," he said.
Set up in 1987, Lifetime is one of the biggest companies in the Irish life assurance market. Figures for 1994 the latest available show it was the third largest company in the annual premium market with a 7.5 per cent stake, after Irish Life (24 per cent) and New Ireland (9.4 per cent). It was the fourth largest company in the single premium market. It sells though the Bank of Ireland branch network.
A breakdown of new 1995 annual premium income shows growth in protection business, flat pension business and a sharp fall in income from savings products. Premium income from protection business in creased by 32 per cent to £4.8 million. Pension income only rose to £4.1 million from £4 million. Income from savings products fell to £4 million from £6 million. Single premium income fell to £24 million from £48 million.
The move by Lifetime follows the pattern set by rival Ark Life the AIB owned group which this week announced a revamp of its products and charges to stem falling sales.
Meanwhile Lifetime Assurance's business in Britain has been sold to Life Assurance Holding Corporation for an undisclosed sum. With 9,600 life policies, mainly in Northern Ireland, and a book of £70 million sterling, it was put on the market last April.
