Canada Life International, the UK-based arm of Winnipeg, Canada-based Great-West Lifeco Inc, said first half offshore bond sales leapt 60% from the same period a year earlier, and coincided with a £2bn increase in funds under administration.
Total new business sales were £566m (US$735m, € 626m) through its combined Isle of Man and Dublin based offshore businesses, the company said in a statement today.
Sales in both jurisdictions were described as “strong”, with Isle of Man sales up 33% and Dublin up 72%, while total assets under administration grew 15%, to £14.6bn, at the end of June, the company added.
These results enabled the company to increase its market share to 28% in the first quarter from 25% in the last quarter of 2016, the company said, citing data from the Association of British Insurers.
Sean Christian, pictured above, Canada Life’s executive director for its international businesses, said the 2017 year-to-date results reflected the “successful ongoing execution” of a strategy formulated last year, which involved identifying “the continued importance of institutional sales to our business” while at the same time, highlighting an opportunity to increase the company’s penetration of the UK retail market.
This “dual jurisdiction proposition and product range”, he added, succeeded by offering both advisers and their clients “flexibility and choice”, while the addition of a capital redemption bond option from both businesses “proved to be very attractive, with the Dublin version in particular addressing an obvious gap in the market”.
“Our estate planning sales are also strong this year, and we have seen increased demand for our protection products, which are used to cover potential liabilities to UK inheritance tax,” Christian said.
“This product is particularly attractive to UK resident non-domiciled individuals looking for an offshore protection solution.”
Christian said the results were “extremely pleasing, and an endorsement of our long-term strategy of being committed to our chosen market, the UK”.
Great-West Lifeco Inc is a diversified financial services holding company with operations in Canada, the United States, and Europe.
Its Canada Life Ltd subsidiary began operations in the UK 1903, and looks after the retirement, investment and protection needs of individuals as well as companies.