INSURER STANDARD Life, which operates two businesses in the Republic, saw sales here rise by 53 per cent to £836 million (€945 million) in the first six months of 2011.
Announcing its first-half results yesterday, the insurer condemned the Government’s plans to cut income tax relief from 41 per cent to 20 per cent. It said the proposal “would effectively end the attractiveness of pensions”.
Halving income-tax relief was “game over” for private savers, said Brendan Barr, head of marketing at Standard Life Ireland.
“How can we persuade people to pay into a pension if tax relief is offered at a paltry 20 per cent on contributions and 49 per cent tax is payable on retirement income?”
Domestic sales at Standard Life Ireland rose 59 per cent from £224 million to £359 million in the first half of the year.
Standard Life International – which provides products primarily to UK investors – increased sales by 49 per cent to £477 million.
The insurer attributed the rise in sales to factors including increased demand for retirement products and single premium bond sales.
“Customers’ continuing priority is to entrust their pension/investment money to a provider they consider financially solid and safe,” said Mr Barr.
The company’s Irish businesses posted sales of £1.29 billion in 2010 – up 51 per cent compared to the preceding year. – (Additional reporting Reuters)
