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Ireland Remains Top For Life Assurance
(Originally published
in Finance Dublin, November 2005. Reproduced
with the kind permission of Finance Dublin)
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Ireland has
maintained its position as the largest cross-border
life assurance centre according to a survey of
2004 figures, writes Boal & Co, who say that
this growth was driven by tax changes in Germany.
A fall-off in this business in 2005 however,
could see the Isle of Man regain some ground.
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Ireland
has surged significantly ahead of Luxembourg and the
Isle of Man in 2004 cross border life assurance premium
income, according to Boal & Co’s latest annual
analysis of the cross-border industry.
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In 2004 Ireland broke the €9 billion barrier for
the first time and wrote almost €2 billion more
than its nearest competitor, Luxembourg. All three
of the cross-border locations have reason to be pleased,
however, in a year where each achieved a year on year
premium income growth in excess of 25 per cent. |
| Boal & Co’s
analysis has been produced following the recent publication
of the 2004 Annual Statistics from the regulators in
each of the three jurisdictions. The graph above was
produced by Boal & Co as part of their analysis.
Ireland will be delighted with this result which has significantly
strengthened their number one position. Significant new business
from the larger Italian companies and from the ‘fire-sale’ in
Germany caused by tax changes helped to contribute to a 43 per cent
growth in premium income over the year. Total gross premiums of €9.4
billion consisted of €8.7 billion single premiums and €0.7
billion regular premiums.We estimate that almost half of that regular
premium figure was attributed to 2004 German new business.
Luxembourg, too, benefited from the change in
German tax regime at the end of 2004 with new business from Germany almost doubling
compared
to 2003.
The Isle of Man will be very pleased to have turned around two previous
years of declining premium income. They remain in 3rd place on this measure,
but their 30 per cent growth in premium income has helped to ensure that
little further ground is lost. The Isle of Man’s gross premium income
of €5.9 billion was split €5.3 billion single premium and €0.6
billion regular premium. The Isle of Man’s growth in premiums will
be all the more pleasing as their insurers have not benefited from the
once off increase in German new business.
Looking forward to 2005 it is difficult to imagine
either Luxembourg or the Isle of Man catching Ireland in gross premium terms.We
would expect
Ireland to continue growing, with its greater diversification of companies
allowing it to take advantage of
emerging opportunities in Europe. Both Ireland and Luxembourg will, however,
suffer some hangover from a large drop-off in German business.
Isle of Man companies remain very well placed
in markets such as the UK, Far East and Middle East and have overall had an excellent
2005 year to
date. This could allow the Isle of Man to regain some ground, particularly
so when business is assessed in annual premium equivalent
terms. |
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