LV= sees sales decrease for first half of 2013

LV= life and pensions sales has decreased 14 per cent to £74.3m on an annual premium equivalent (APE) basis – a measure comprising new regular premium sales plus 10 per cent of single premiums – for the first half of 2013, which the firm attributed to a “challenging market” and a “focus on returns”.

The group has seen a drop in sales of 18 per cent in its retirement business from £66.7m in the first half of 2012 to £54.8m in the same period of 2013, with a 51 per cent drop in annuities and 14 per cent in equity release. However, the pensions side of the business saw an increase of 27 per cent. The protection business also saw a decrease of 9 per cent, an APE of £14.7m, while the savings and investments part of the firm saw a 50 per cent increase.

The firm’s life managing director, Richard Rowney, said, “The market has been challenging in 2013 following the regulation changes at the end of last year.”

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“Within annuities we took a decision to focus on returns over sales and this reflected in the results,” he added.

Mr Rowney said its new sick pay insurance product has been “very well received” so far in the first half of the year.