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LV= annuity sales up 30% despite Budget changes
Mutual LV= has reported strong annuity sales for the second quarter of the year despite the sweeping changes to retirement income announced in the 2014 Budget.
The insurer said life business sales were up £80m compared to this time last year, though it added annuity contracts were being written at lower margins.
Equity release, he added, had also performed well with sales up more than 50% to £57m.
Group CEO Mike Rogers said the business had initially expected annuity sales to be “significantly lower” after the Budget announcement.
He said the sales figures reflected the firm’s launch of a one year fixed annuity and its simplified drawdown product.
Roger’s added: “We initially expected annuity sales to be significantly down but sales have held up well and are up over 30% year-on-year albeit at lower margins. In Q2 post-Budget we saw sales of £117m, slightly more than Q1 demonstrating our continuing strength in this area.”
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Annuity sales for the six months to the end of June were £232m. For the six months ended 30 June 2013 they were £176m. The firm said annuity sales for the 12 months needed 31 December were £457m