Legal & General has seen individual annuity sales climb 118 per cent following the distribution deal it signed with Aegon last year.
In its half-year results, published today, L&G saw individual annuity business rise to £345m compared with £158m at the same time in 2016.
L&G’s retirement arm now has 550,000 individual annuity customers and manages over £21bn in assets.
L&G has written new Aegon annuity business since October after Aegon decided to pull out of the annuity market to concentrate on its platform and protection businesses.
L&G says it is expecting further opportunities to come up as more providers stop writing annuities.
It says: “Our Aegon distribution agreement signed in October has delivered good levels of new business in addition to our existing arrangements, and we expect to see continued positive growth in individual annuity sales in the second half of the year.
“The combination of freedom and choice in pensions and Solvency II has resulted in consolidation among individual annuity providers. We expect there to be further back-book consolidation opportunities over time and we will consider these as and when they arise.”
L&G’s equity release business saw sales go from £231m to £424m as at the end of June, and the company now has a 30 per cent share of the lifetime mortgage market.
The retirement arm made a pre-tax profit of £604m, up 29 per cent from £468m a year ago.
Legal & General Investment Management saw pre-tax profits go from £163m to £194m over the same period, an increase of 17 per cent. Revenue from management fees went from £332m to £382m, excluding £8m spent on third party market data.