Pensions 

LV reports drop in retirement sales

LV reports drop in retirement sales

LV has reported a three per cent drop in sales of its retirement solutions during the first half of 2018, figures from its interim results show.

The life and pensions firm saw its sale of retirement solutions reduce to £831m during the first half this year, compared to £857m in the same period last year.

The drop in sales was offset by a growth in equity release sales which were up sixty six per cent to £88m, compared to £53m during the first half 0f 2017.

The mutual is expecting a new contract for investment funds with Vanguard, to stimulate growth in the second half of the year.

LV’s protection product sales took a hit, showing a 15 per cent decrease from £178m during the first half of last year to £152 during the first half of this year.

The results come after LV restructured its life business to bring its protection, retirement solutions and heritage businesses under one management team.

Richard Rowney, chairman of the LV Group, said: "We enter the second half of the year with both of our trading businesses in good health and a clear vision for the future.

"We will continue to maintain a tight grip on our costs while seeking to grow through a combination of good value products and the excellent customer service LV is proudly famous for as we deliver on our vision of building a sustainable modern Mutual."

New business contribution in its life and pensions business went down by 30 per cent to £14m during the first half of this year with protection decreasing to £2m.

However, new business contribution in retirement increased to £12m during the first half of this year.  

The overall operating profit within LVs life and pensions business rose from £7m in the first half of 2017 to £19m during the first half of this year, showing a 171 per cent jump.

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