LV= is the latest provider to reveal a boost to its pensions and advice businesses as savers cash in their defined benefit pensions in favour of defined contribution schemes.
In its annual results this morning, LV= says that DB transfers contributed to double digit growth in its pensions portfolio, and that turnover from retirement advice was up by a quarter over the year.
LV= made a £13m profit from its life and pensions business in 2016. This more than doubled to £37m for the 2017 financial year.
LV= described retirement advice as “strategically important” to the firm as sales of retirement solutions increase from £1.55bn to £1.72bn, even after it pulled its enhanced annuity offering in 2016.
Chief executive Richard Rowney said: “We ended 2017 with a much improved capital position supported by strong trading performance in both our businesses. Despite challenging market conditions the life business is well placed to build on its track record of profitable growth.”
During the year, the firm completed its strategic partnership with Allianz. While LV= recently bought a majority stake in robo-adviser Wealth Wizards and launched a robo-paraplanning service, backing digital advice to further boost profits, it is understood to have shied away from fuller mergers after talks with Royal London broke down early last year.