LV’s latest trading statement has shown increasing sales across its life insurance business from the start of this year to the end of September, including almost a 6 per cent increase in annuity sales.
Overall life insurance sales were up to £1.14bn at 30 September from £1.03bn over the same period last year.
This growth was driven by sales increases across the firm’s various divisions, with protection up to £170m from £146m year on year, annuities up to £325m from £307m, pensions up to £453m from £447m and equity release up to £84m from £62m.
Previously a spokesperson confirmed to FTAdviser figures for annuities include sales of its one-year ‘annuity’, which along with several other life companies LV had launched in the weeks after the Budget and is actually written under drawdown rules.
Mike Rogers, LV group’s chief executive, commented that sales in both trading businesses have been good in a challenging market. “In our life business sales are up £100m compared to this time last year and we have achieved over £400m of sales in just the last three months.
“Margins post-budget are generally lower driven by the business mix in our retirement business, but these strong sales are a great achievement and testament to our customer-focused range of products.”
Mr Rogers noted that the firm’s drawdown products, equity release and one year fixed term annuities have proved particularly popular following the changes announced in March.
“Our with-profits investments portfolio continues its strong year with sales now up over 60 per cent compared to 2013. We believe this is also being driven by the pension market-place changes now annuities are no longer compulsory.
“More retirees are shopping around for investment products with a level of guarantee which these products can offer. We offer a full range of ‘at retirement’ products and we are well placed to benefit from the changes as more retirees look for different financial solutions for their retirement.”
Protection sales were up £24m compared to this time last year, with Mr Rogers adding that he was pleased with performance in the last quarter.
“The increase includes strong sales of our new income protection product,” he said.
peter.walker@ft.com
