Legal and General has bucked fears of a stagnant annuity market by posting an 18 per cent growth in sales last year.
Individual annuity sales rose from £671m to £795m, financial results released this morning show.
Legal and General’s retirement division saw a 22 per cent increase in operating profit, driven by “increasing market share in individual annuities, and consistent profits emerging from the backbook”.
In terms of market share for individual annuities, L&G says it has gone from 14 per cent to 19 per cent thanks to “product innovation and significantly strengthening our enhanced annuity offering”.
The firm now holds some £63bn in total annuity assets, with total UK sales across annuity products of £9.1bn last year.
Legal and General Investment Management ticked over the £1trn mark in assets under management, posting 3 per cent growth to £1,015bn.
While operating profit across the L&G group was up 10 per cent, profit after tax was down 3 per cent to £1,827m, accounting for a prior year one-off US tax benefit of £246m.
The results read: “The persistent trend of an ageing UK population means L&G retail’s target market continues to expand, both in terms of the numbers of retirees and the levels of wealth they hold.
“Ageing demographics is a global trend creating new challenges and opportunities. Principally, employers and individuals are struggling to provide financially secure retirements. To address this need, our strategy provides innovative de-risking solutions for customers.”