Bank of Ireland Life will not rule out buying a competing business this year if the opportunity arises, according to its managing director.

Mr Brian Forrester told The Irish Times yesterday that while the life and pensions business has the scale it needs, it will still buy other businesses if they come up for sale.

In an interview published today, he says: "Strategically we don't need to buy another player but, from an acquisition point of view, we'll look at any opportunity that arises.

"You really do need scale, the increased regulation is becoming a bigger burden on companies, and margins have continued to squeeze over the years.

"It's a tough business to operate in, and I think that's going to lead to more consolidation in the future," he says.

Bank of Ireland combines the bank's own life and pensions business and that of New Ireland, which it bought in late 1997.

Yesterday, it published figures showing that the level of new policies and investment it sold in 2004 have given it a 25 per cent share of the Republic's market.

Total annual premium equivalent (APE), effectively the value of new investments and policies it sold during 2004, was €284 million, up 21 per cent on the 2003 return of €234 million.

Within that, annual premiums accounted for €191.8 million, a 20 per cent increase on 2003.

Life policies accounted for €54.7 million and pensions came to €137.1 million.

In single premium products, life policies grew 82 per cent in 2004 to €55 million, from €30 million in 2003.

Pensions were up 18 per cent to €28 million from €23.8 million.

Overall, single premium business grew 54 per cent to €83 million from €54 million.

Non-life single premium investments slumped by 56 per cent to €9.1 million from €20.5 million. Mr Forrester said this was due to a shift in investment trends in 2004.

Meanwhile, unit-linked lump sum investments increased by 82 per cent to €550 million and Special Savings Incentive Account (SSIA) contribution increases went up by 87 per cent to €9.4 million.