LV= has reported a £260m drop in life and pensions sales, which the firm is partly attributing to a decline in defined benefit to defined contribution transfer flows.
In results for the first half of 2019 released this morning, LV= says overall new business sales for life and pensions were £710m, compared with £970m in the first half of last year.
Trading conditions “remain tough”, the firm says, with “investment and pensions markets down sharply”, driven by “investor uncertainty” and the “continued decline” of DB transfers.
LV= also notes the impact of ongoing questions over the UK’s future relationship with the EU on savings and retirement sales, which came in at £560m, compared with £818m for the same period in 2018.
“Market uncertainty in the lead up to Brexit” has driven a dip in sales of flexible guaranteed products, it says.
However, it notes that “support from IFAs has been positive” in particular over the stocks and shares Isa it recently launched alongside a repositioning of its flexible guaranteed products to create a suite of smoothed managed funds, designed to ride out the market fluctuations.
Protection sales have held up, and are roughly stable at £150m.