In its preliminary results, it said this had led to stable volumes of housing-related protection and general insurance sales, with operating profit for its housing and protection division rising to £196m in 2010 from £190m in 2009.

However, L&G has revealed it will look to increase its direct protection business to meet the challenges presented by the post-RDR distribution landscape.

The insurer said direct business grew 47% last year and now represents 6% of total individual protection volumes.

It said regulatory and legislative change is creating opportunities in the housing and protection market with the potential for shifts in distribution and competition.

In particular, it highlighted the ECJ ruling with respect to gender discrimination, which will affect underwriting and pricing in individual protection.

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“We are responding through maintaining a tight control on costs, focusing on customer retention, and developing a sales and marketing strategy designed to meet the post RDR distribution landscape,” it said.

“This includes increasing our direct business and seeking new distribution partnerships with banks and direct affinity partners.”

In individual protection, gross premiums grew 9% to £890m in 2010 as a result of new business sales of £118m and the completion of the transfer of the Nationwide Life back book.

The insurer wrote more than 16% of the individual protection market last year, thanks in part to its move into more specialised areas of the market.

There was a 30% growth in business protection and a 9% growth in high net worth protection.