Sales of equity release products were £45m in the nine months ended 30 September compared to £84m for the same period last year due to a shortage of funding generated by annuities.
In July following the release of its half year results, the friendly society said it was in talks with external sources to open up new lines of funding unconnected with the sale of annuities, the traditional form of financing equity release products.
Speaking about the latest results, Richard Rowney, managing director of LV life and pensions, said LV were very close to agreeing a funding deal and were confident once this had gone through it would be able to turn sales around in ‘almost’ a quarter.
Rowney said there was strong demand for its equity release products but it was constrained by its supply of funding.
“That [deal] effectively should provide us with enough funding to allow us to write whatever we wish to write in 2016 which is good news for LV and the equity release market because we will have broken the link [with annuities].”
LV is also looking at ways it can fund equity release mortgages from sources inside the company.
Elsewhere in the business, protection sales grew by 35% from £155m to £209m in the nine months to September and its overall life business grew 22% from £1,102m to £1,339m.
