LV=’s life business has reported a 23 per cent drop in underlying operating profit in the first half of 2013 from £14.5m in the same period last year to £11.1m this year as post-RDR sales plummeted 14 per cent.
The insurer has posted an IFRS pre-tax profit of £88.4m for the six months to 30 June 2013, up 145 per cent from £36.1m in H1 2012.
This figure was boosted by over £55m in short-term investment fluctuations, which are excluded from underlying profits.
Sales in the life division fell 14 per cent from £86m to £74.3m.
Protection new business was down 9 per cent from £16.1m to £14.7m while overall retirement sales dropped 18 per cent from £66.7m to £54.8m.
Pensions sales were up 27 per cent from £26.4m to £33.5m but annuity sales fell 51 per cent from £36m to £17.6m. Equity release sales were also down 14 per cent from £4.3m to £3.7m.
LV= chief executive Mike Rogers says: “In our life business, new business sales and underlying operating profit were affected by the industry-wide impact of the RDR and gender directive. In annuities sales fell in a competitive market in which we focused on returns rather than market share.”