Bank of Ireland's life and pensions business delivered a 27 per cent increase in new business last year, according to figures released by the bank yesterday.

Brian Forrester, managing director of Bank of Ireland Life, said sales of single premium investments were particularly buoyant, with new life assurance business up 63 per cent and new pensions business up 43 per cent. Combined, new sales of the two products totalled €1.3 billion last year, up from €830 million in 2004.

Bank of Ireland Life, an independent group that's been operating within Bank of Ireland since 1987, reiterated comments made in its parent's interim results in November that it expects to have captured a quarter of the life assurance market when industry figures for 2005 are published in March. Its products are sold at 300 Bank of Ireland branches around the State.

"This significant growth shows that investors are becoming more confident about the prospects for equity markets, and we are now well past the stage where their focus was primarily on property," said Mr Forrester. "New investors in 2006 are already off to a great start and we think there is lots more value to be gained in equity-based products."

In pensions, Bank of Ireland Life recorded a 17 per cent increase in new annual premium sales to €159.9 million, while sales of single premium pensions were €401 million.

Mr Forrester said that, while he was pleased with the performance of the group's pension offerings, it was still concerned about the high number of people that do not have pensions.

He said the imminent maturity of some of the Government's Special Savings Incentive Accounts (SSIAs) may help boost pension coverage, as the scheme has introduced many people to the idea of saving, as well as boosting confidence in equity-based products.

Three-quarters of the bank's customers with equity-based SSIAs are now paying the maximum contribution of €254 a month after total contributions to such accounts increased by 22 per cent, or €11.4 million, last year.

While the outcome of individual investments will vary depending on the date of maturity and the funds in which the money is invested, overall equity SSIAs are expected to pay out about €2,000 more than a deposit-based SSIA, according to Mr Forrester.

He said the bank's next challenge was to encourage consumers to continue saving after their SSIAs had matured, adding that Bank of Ireland Life was well placed to attract a significant proportion of any reinvested funds.