About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, October 1st, 10:18AM
rss
Latest Headlines

Insurance companies had a tough time last year

Stats from the Investment Savings and Insurance Association show that last year was a tough year for insurance companies.

Wednesday, September 5th 2001, 9:59PM

The popularity of insurance bonds continues to decline, with sales falling sharply in the year ending June 30.

The bonds were an attractive investment in the early and mid 1990’s largely because they helped people avoid the superannuation surcharge.

However, the tax was scrapped in 1998 and industry figures out yesterday show sales have fallen by more than a quarter in the past year.

The data, from the Investment Savings and Insurance Association (ISI), shows single premium business done by insurers was worth about $175 million last year.

That was down nearly 29% on the previous year’s result of $245 million, and down 52% on 1999 year.

The biggest product within the single premium category is insurance bonds.

"They are just not very attractive in the current environment," ISI chief executive Vance Arkinstall says.

Annual premium income for new business rose 3.2% to $175 million during the year, while annual premium income for existing business was flat at $1.09 billion.

Insurance and superannuation firms also experienced a sharp drop in cash flow during the year.

This was largely due to a fall in world investment markets, Arkinstall says.

Investment income dropped nearly 86% to $212 million, though premium income was up just over 2% to $2.6 billion.

"After a number of years of good returns, the last 12 months has been painful."

The one consolation was that tax paid by insurers and superannuation firms fell by two thirds.

Commissions were also up nearly 12% during the year.

« Old boys question start-upsAdvisers told to go on the attack »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Strategy Thoughts

Tip from the top

Fidelity Income Protection
Changes to the wording make it easier to issue policies, but advisers should be careful about proof of income.

News Bites
Latest Comments
  • AMP: Concern over advice quality
    “Brent. Thanks, I have been engaging for a long time, to some advisers' annoyance. The CFP is not a degree, but an international...”
    23 hours ago by Mike Naylor
  • Naylor: Time to rename advisers
    “Let me preface my comments by saying that these are my personal views and not necessarily the views of any business or organisation...”
    1 day ago by Keith Walter
  • Naylor: Time to rename advisers
    “Crazy idea: why don't we simply call anyone who dispenses financial advice an authorized financial advisor (ie: level playing...”
    1 day ago by Pragmatic
  • AMP: Concern over advice quality
    “I'm convinced that the CFP designation is a step back not forward for many in the industry, as it merely demonstrates academic...”
    2 days ago by Pragmatic
  • AMP: Concern over advice quality
    “Hi Mike Thanks for those comments and it’s good to see you engaging with the industry. In the 2006 to 2009 period I...”
    2 days ago by Brent Sheather
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com