ACCORDING to figures from the Associated Scottish Life Offices, which
represents the nine major life companies based in Scotland, the industry
enjoyed another year of expansion despite the general economic gloom in
1992.
They show that total new premium income for members in 1992 increased
from #4959m to #6024m, a rise of 21%. This follows an equivalent
increase of 27% in 1991. Within this total single premiums payable under
individual contracts enjoyed the strongest growth, up 40% to #3916m.
Funds under management rose by 16% to exceed #70 billion for the first
time.
In contrast to the general rise in unemployment, the companies report
an increase in aggregate staff numbers. Although the rate of growth was
slower than in previous years, the offices now employ of 13,500 people
in Scotland and over 20,000 throughout the UK.
The Associated Life Offices comments: ''These figures demonstrate the
continuing strengths of the Scottish Life Offices in a competitive
financial services market. They also emphasise the benefit to the
Scottish economy of having so many leading life offices based in
Scotland.''
* SCOTTISH Amicable, the Glasgow-based pensions and life assurance
company, yesterday announced a 15% rise in new business last year to a
record total of #561m in premium income.
The total, which compared to a 1991 figure of #489m, was made up of
#460m (#386m) in single premiums and #101m (#103m) in annual premiums,
said deputy managing director Maurice Paterson.
Annual premium business remained steady throughout the year which the
company considered a good performance given the effects of the economic
recession and the uncertainty in the housing market.
''Single premiums were once again dominated by personal pensions with
transfer values accounting for the bulk of the 19% increase,'' Mr
Paterson said.
''Our capital investment bond figures were boosted by the first issue
of our Capital Guarantee Bond which alone contributed over #22m during
November and December.'' A further series of this bond is likely to
launched shortly.
Mr Paterson added that Scottish Amicable had again decided to steer
clear of the with-profit bond market despite the possible cost in new
business terms. ''We still believe that these products do not serve the
long-term interests of our policyholders,'' he said.
He considered that this kind of bond tended to tie up too much working
capital, funds that could be put to better use elsewhere.
The vast majority of the new business was channelled to the company by
independent financial advisers -- 92% of single and 79% of annual
premiums -- with the rest coming from its tied agents.
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