LV has revealed today (27 April) that its overall life and heritage sales are up by almost a fifth, despite a fall in equity release and annuity sales.
Its results for the three months to the end of March, published today (27 April), revealed the firm’s overall life and heritage sales were £412m, up 19 per cent when compared with the first quarter of 2014.
Retirement sales stood at £334m, increasing 15 per cent from the same period in 2014, pensions sales stood at £185m this year, increasing 58 per cent, and protection sales also increased by 36 per cent to £75m this year.
However, the figure for annuities was down, falling 39 per cent to £70m while equity release also fell by 38 per cent to £18m.
Richard Rowney, managing director of LV life and pensions, said: “We are the leading provider of individual income protection and we see further growth opportunities in this area.
“In order to grow the market and ensure that more households can benefit from this valuable income solution we have been running a series of Wake Up to IP seminars designed to help advisers that don’t currently sell income protection to discuss these products with clients.
“We support the industry-wide income protection initiative, Seven Families, which seeks to boost awareness of these products and have a 5 per cent IP discount running until the end of this month, which includes a donation to the initiative for every policy sold.”
He added the 58 per cent increase in pension sales and 110 per cent increase in flexible guarantee bond sales indicate a change in the buying behaviour of those planning and approaching retirement.
Mr Rowney said: “In pensions, more retirees are selecting income drawdown products and this is reflected in the decrease in annuity sales, which the industry anticipated following the Budget changes announced last year.
“However, we are seeing continued demand for fixed term annuities amongst those who want greater income flexibility, and want an investment guarantee.
“Our flexible guarantee bonds are proving to be very popular with those approaching retirement, resulting in sales year-on-year more than doubling. Equity release sales have reduced but remain in line with our 2015 plan.”
ruth.gillbe@ft.com
