ABI Faces Slump In Business

The Association of British Insurers has reported a 64% drop in total single premium investment and savings new business in Q4 2008 to 3.77 billion from 10.54 billion in Q4 2007. Total single premium accumulation and protection new business in

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The Association of British Insurers has reported a 64% drop in total single premium investment and savings new business in Q4 2008 to 3.77 billion from 10.54 billion in Q4 2007.

Total single premium accumulation and protection new business in Q4 2008 also fell by 45% to 11.7 billion from 21.4 billion in Q4 2007.

In 2008 total decumulation for new business was 13.9 billion, a decrease of 15 from 14.1 billion in the full year for 2007.

Despite rather modest figures the ABI says business in force figures have remained fairly steady over 2008 and says people have not actively moved money out of the insurance sector.

The recessionary conditions are likely to remain for some time but the insurance industry like all other sectors will be doing its best to work to get Britain out of the situation we find ourselves in, says ABI spokesman.

L.D.

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