Legal & General has reported a 78 per cent boost in individual annuity sales in 2017, the highest volume it has seen since 2014, the year before pension freedoms were introduced.
Annuity sales reached £671m in 2017, up from £378m in 2016. According to the company’s annual results statement, it manages approximately £20bn in assets for 500,000 annuity customers.
In January, Money Marketing revealed L&G is considering introducing more flexible annuity and drawdown products as it looks to expand its product range this year.
At that time, L&G retail retirement chief executive officer Chris Knight said the company believes annuities still have a role to play in financial planning.
The retirement division reported a 54 per cent increase in operating profit to £1.25bn in 2017, up from £809m in 2016. The company says this was due to the division’s institutional and retail arms delivering good results in their front and back books.
That division saw an underlying 13 per cent growth rate.
Legal & General Investment Management grew its operating profit by 9 per cent to £400m in 2017, up from £366m in 2016. Revenue from management fees increased 11 per cent to £780m, up from £700m in 2016.
Net inflows in 2017 were £43.5bn, up from £29.2bn in 2016.
Overall, the group increased its operating profit by 32 per cent to £2.05bn.