Introduction
The decline of with-profits bonds and increased consumer awareness of savings products has led to an increase in popularity of these lesser known products. This 2005 report analyses recent trends in the market for these three products, the key distribution channels and leading competitors. Forecasts are given for the future of the product.
Scope of this report
- Covers Income and Growth Bonds, Distribution Bonds and Guaranteed Equity Bonds
- Uses ABI statistics, extensive secondary sources and primary interviews with leading players and distributors
- Utilizes Datamonitor's life and pensions forecasting model to forecast new business growth for each bond between 2004-2009
Research and analysis highlights
Between 2000-2004 Guaranteed Equity Bonds increased their overall share of the single premium market from 3% to 9%. Guaranteed Equity Bonds saw new business levels grow at compound rate of 31% between 2000-2004 as investors looked towards guaranteed products as a cautious route back into the markets;
The search for an alternative to with-profit products has also seen Distribution Bonds increase their market share over this period. From a market share of 5% in 2000, Distribution Bonds now account for just over 10% of all single premium new business.
Datamonitor's base scenario forecasts 'other' bond new business to grow at a compound annual rate of 8% between 2004-2009. This leaves total other bond new business to stand at ?707m in 2009, compared to ?501m in 2004.
Key reasons to read this report
- Market forecast: Identify the future of the market for lesser-known bond products and the opportunities these products could provide
- Market data: Understand the market for other bonds, the distribution trends and drivers of business in these product areas
- Understand how business trends in the larger bond products can open opportunities for sales of these products