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Investment bond business down 26 per cent, says the ABI

The Association of British Insurers has revealed a 26 per cent drop in investment bond business during Q2 2008 compared to the same period last year, due in part to the Government’s capital gains tax changes.

In its Q2 2008 results, released today, the trade body recorded £6.86bn in single premium investment bond business, down 26 per cent compared to Q2 2007.

The same results saw regular premium protection business in Q2 2008 increase 13.6 per to £1.59bn, compared to £1.42bn during Q2 2007.

However, single premium protection business dipped 9.5 per cent from £20.7bn in Q2 2007 to £18.73bn this year.

Experiencing a similar drop of 11.2 per cent was single premium individual pensions, which recorded £5.99bn in Q2 2008 down from £6.75bn for the same period last year.

ABI spokesman Jon French says: “‘To a certain extent the data reflects conditions in the overall economy. Bond sales have suffered for a variety of reasons, including the changes to the Capital Gains Tax regime.”

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