Life and pension sales at Hibernian grew by 35 per cent to £1.73 billion sterling (€2.3 billion) in 2007, according to new figures released by its London-based parent company Aviva.
Hibernian Life Holdings, the Irish group formed when AIB's Ark Life merged with Hibernian Life and Pensions, has completed its second year of trading in 2007. AIB has a 25 per cent stake in Aviva's Irish business.
Aviva, the UK's largest insurer, said its overall sales rose 22 per cent, more than analysts' estimates, to £31.6 billion in 2007 as its US business quadrupled. Aviva's European sales rose 16 per cent buoyed by gains in Ireland, the Netherlands, Germany and Belgium.
Aviva's figures show that its Irish sales are growing at a higher rate through the AIB distribution network. Sales through the bank's Ark business rose 46 per cent to £864 million, while sales through brokers increased 26 per cent to £866 million, reflecting higher sales of corporate pensions. The growth through both channels was helped by new products and an expanded range of funds.
According to figures released by Hibernian in Ireland, the group increased its market share to 17.3 per cent from 16.7 per cent during the year. The overall life and pensions market grew by 23 per cent in 2007.
Hibernian said total sales on an annual premium equivalent basis - by which new business is measured in Ireland - increased 28 per cent to €359.5 million, while pension single premium sales rose 47 per cent to €645.7 million.
The group said high-yield equity and European commercial property funds sold "particularly well" and the Secure Capital Fund "proved to be very popular for investors seeking exposure to equities and property with a capital guarantee".
Stuart Pardy, group chief executive of Hibernian, said the results showed the effect of combining AIB and Hibernian's life and pensions companies. "Hibernian is well placed for 2008," he said. Dermot Browne, managing director of Hibernian Life Holdings, said there had been a strong performance in the life and pensions market in the first half of 2007.
This reflects the buoyant economy and SSIA money in the market in the first half of 2007 and the weakening economy in the second half of the year.
Sales at Aviva's Irish business was surpassed in Europe by growth in its operations in Poland, where life and pensions sales increased by 53 per cent to £844 million. Aviva has received approval to sell insurance products in Poland through AIB's subsidiary Bank Zachodni.
Hibernian is in talks to take a significant stake in Irish health insurer Vivas.
