Sales of LV=’s flexible guarantee bonds have increased by 153 per cent this year, according to Richard Rowney.
The mutual’s managing director for life and pensions said around half of this business had been written within the pension wrapper and was sparked by the pension freedoms.
LV= sold a total of £248m in flexible guarantee bonds between 1 January and 30 September, up from £98m in the previous nine months.
Mr Rowney said: “We looked at what customers are saying they need and they say they like the ability to put lump sums away with a good return on it and with guarantees.
“We increasingly see it being put into people’s pension wrappers so the freedoms have helped enormously.”
One area which decreased was equity release, where sales fell by 46 per cent to £45m but Mr Rowney said this could soon change.
He said: “We can only write as much equity release as we have funding from our annuity book but the demand is absolutely there.
“We have been very keen to find alternative sources of funding and we are probably four weeks away from being able to announce that.”
Meanwhile bulk annuity provider Rothesay Life announced that it had written £1.9bn of new business in the first half of 2015.
It saw a record volume of new organic business during the first half of 2015 with total gross written premiums of £1.8bn.
Steven Robinson, managing director of Bristol-based Clarke Robinson, said: “It is definitely the case that people are looking for alternative pension products.
“Annuity is so fixed but then drawdown can be high risk.”