Under the APE, the value of regular premiums from products newly sold in a specific year (or the initial annualized premium) is added to 10 percent of any new single premiums
"The market volatility experienced in the second half of last year has made investors more cautious going into this year, especially those investing in single premiums
," Rien said.
Total sales of pounds 458m on an annualised premium basis -representing new regular premiums plus 10% of single premiums
-were up 42% on a year earlier.
VARIABLE LIFE INSURANCE SALES with single premiums
included at 10% for the 38 companies reporting in the VALUE survey for the 1st quarter of 2008 were $620.8 million, a 22.7% decrease from 4th quarter 2007 sales of $803 million.
New business sales, which are worked out using the industry measure of all regular premiums and 10% of single premiums
, were up 46% to pounds 1.74bn in the UK, which was ahead of the pounds 1.58bn expected in the City.
Worldwide sales using the industry's standard measure -regular premiums and one-tenth of single premiums
-fell 10pc in the first nine months of the year.
Limra International, the industry's research and marketing association, only counts 10% of single premiums
toward total first-year premiums because recurring premium products are about 10 times as profitable, Kehrer said.
Sales of single premiums
were EUR195.7m, up an impressive 62 per cent.
* Single premiums
are now, on average, $3,060 for single coverage and $7,954 for family coverage.
Annual premium equivalent is a standard industry measure, calculated as new regular premiums, plus one tenth of single premiums
A series of single premiums
has greater flexibility, lower initial charges and the ability to pay up to the maximum allowed when you know your income for each tax year.