Annuity sales slide ahead of pension change

Caitlin Morrison
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INSURANCE group LV has reported a six per cent increase in sales in its life insurance business during 2014, up to £1.51bn from £1.43bn in 2013.

Pensions sales went up by eight per cent, while sales in the savings & investments division grew by 66 per cent.

Sales of annuities were reduced by 15 per cent, from £457m to £387m, a moved that the company had anticipated, according to Richard Rowney, managing director for LV life and pensions.

“As expected, following the chancellor’s announcement that annuities will no longer be compulsory, we have seen a drop in sales in enhanced annuities,” he commented.

“However, sales have been good in other products, particularly in equity release, fixed term annuities and bonds, as people increasingly choose to take other retirement income products that offer a level of guarantee.”

Rowney added: “Overall, despite the challenges we faced in 2014, sales have been good and our focus on good value products and a market-leading level of service for our advisers and customers means we can confidently expect to see continued attractive returns for members over the medium term.”

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