Single premium offshore bond business into the UK collapsed in the second quarter of the year, falling 56% compared the same period in 2008, according to figures released by the Association of British Insurers (ABI).
Sales for the year as a whole also make for grim reading for international insurers focused on the UK, with a decline of nearly 24% in single premium products over the year to the end of June 2009.
The second quarter single premium sales figure of £941m was the lowest for more than two years.
However, regular premium business offered some positive news. Sales were up 24% in the three months spanning April to June, while there was a small increase of 2.7% year on year up to the same period, according to the ABI.
Regular premium business is by far the smallest of the two offshore markets, with combined sales in the first half of the year standing at approximately £10m, despite the growth, compared to £1.85bn for single premium business in the first six months of 2009.
The data comes as no surprise, however, as many offshore providers have experienced business falls in line with the figures amid waning investor confidence.
