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Ireland Hits Number One for Cross Border Life Assurance Business

In the recent analysis performed by offshore actuaries Boal & Co, Ireland has emerged for the first time as the number one location for cross border life assurance business.

Duncan Robertson, a Director and Actuary in Boal & Co’s Irish office said “our analysis highlights that for the first time Ireland’s total premium income from cross border life assurance business exceeded that of both the Isle of Man and Luxembourg.” Boal & Co’s analysis has been produced following the recent publication of the Department for Enterprise, Trade and Employment’s 2002 Annual Report, the “Blue Book”.

The table below was produced by Boal & Co as part of their analysis.

Robertson went on to add that “the analysis shows that in 2002 Ireland overtook Isle of Man, having overtaken Luxembourg the previous year, in 2001. The analysis is based on the commonly published figures reported by regulators in the three jurisdictions which means that it is limited, for now, to total premium income, a measure which adds new business premiums and renewal premiums, with no differentiation between single premium and regular premium amounts.

“Ireland has managed to move into the no.1 slot through bucking the expected downturn in business that would have been anticipated during the turbulent stockmarkets witnessed in 2002, with Ireland’s premium levels increasing by 16%. In contrast the Isle of Man premium levels suffered badly, reducing by 22%. Luxembourg’s premium levels have proved more resilient than the Isle of Man’s but were not able to capture the growth experienced by Ireland.

“The increase in Ireland’s premium levels is made the more surprising by the relatively small number of new entrants that entered the market in 2002. Only one new life company, Scottish Equitable International (Ireland), started up in Ireland during 2002.

“Generally, across the board Ireland based companies produced increases in new business. Therefore in terms of looking forward and trying to get a feel for future trends there is evidence that Ireland is still a young growing location with future room for continued growth as companies mature. In addition the 2003 premium levels for Ireland will have benefited from the authorisation during the year of at least one significant new player. The successful regulatory environment that has been created in Ireland must also have been a contributing factor to the growth in premium levels, and it must be hoped that IFSRA (the new regulator) continues to provide this positive environment going forward.

“In relation to the other jurisdictions the future trend for Isle of Man premium income is made more uncertain by recent announcements by CMI and Scottish Provident International to significantly reduce product ranges and market breadth, and retrenchment at one or two other companies. Similarly Luxembourg must be worried by consolidation and by recent trends to concentrate Pan-European activities out of an Ireland base, e.g. by Scottish Equitable International.”

Duncan Robertson
Boal & Co