Total single premium accumulation and protection new business sales plunged 43 per cent to £9.65bn in Q1 2009 from £16.8bn in Q1 2008.
Individual pension sales fell 10.5 per cent to £751m from £839m in the first quarter 2008. On a single premium basis, individual pensions new business dropped 28 per cent to £3.36bn from £4.68bn.
Meanwhile sales of investment and savings products in the first quarter fell 15.5 per cent from £20m to £17m. Single premium investment and savings new business in Q1 2009 was £3.03bn, down 58 per cent from £7.27bn in the first quarter of 2008.
Total decumulation new business in Q1 2009 was up 1.7 per cent to £3.42bn from £3.37bn in the first quarter of 2008.
An ABI spokesman says: “It is not surprising, given the economic circumstances, that new business is down. This is the usual pattern in a recession. On the investment bond side, the effects of the recession have been exacerbated by ill-considered changes to the capital gains tax regime.”