SWEDEN – Swedish savers placed almost SEK23bn (€2.5bn) in the new savings product – the Kapitalpension - during 2005, according to figures from the Swedish Insurance Federation, Försäkringsförbundet.

Kapitalpension, a pension insurance product sold mainly to private individuals and approved by government in December 2004, has a lower yield tax, no wealth tax and no income tax paid when insurance benefits are taken out.

The biggest inflow was during the fourth quarter.

According to a Försäkringsförbundet spokesperson, income for life insurance companies was pegged at SEK139.8bn, of which SEK124.5bn came from insurance on the competitive market.

New business on the competitive market was up 6.5% for life insurance with annual premium compared to 2004, and amounts to SEK10.5bn. Single premium life insurance more than doubled to SEK29bn.

Life insurer assets under management were up 17% to SEK1.8tn, and non-life assets increased 8.8% to SEK386bn.

Total non-life insurance companies' premium income was SEK54.7bn in 2005.