Irish Life & Permanent has warned that first quarter sales at its life and pensions division will fall short of expectations.
The financial group said sales have suffered following the high level of interest in the Government's SSIAs last year and a change in the "seasonality" of pension sales due to tax changes coupled with the long awaited launch of PRSAs.
However, the company also said that there has been 'exceptionally strong demand' for residential mortgages in the first quarter of the year.
In a trading statement today, the financial company said funded mortgages and mortgage approvals are well ahead of last year's levels.
However, IL&P has also been hit by a slump in the market for life assurance products, which is down by up to 40 per cent in the industry.
IL&P has blamed SSIAs and the poor performance of equity markets for the slump.
It also says a change in the seasonality of pension sales due to tax changes along with the launch of the Personal Retirement Savings Accounts has affected the life market.
The company says it hopes the positive performance of its banking area will compensate for the poor life sales in the first quarter.