LV= life and pensions profits double on pension freedoms

Richard Rowney LV CEOLV= has seen operating profits more than double in its life and pensions business thanks to pension freedoms.

The provider’s interim results, published today, show operating profit has gone from £12m for the first half of last year to £28m as at 30 June.

It has seen a 10 per cent increase in pensions sales overall, a 39 per cent rise in its flexible guarantee products and an increase of 42 per cent in fixed term annuity sales.

Across the retirement solutions division, new business sales are up 20 per cent from £720m to £863m.

Protection sales are relatively flat at £146m.

Last year LV= rolled out its online advice service Retirement Wizard and agreed partnerships with Key Retirement Solutions, Reassure and Berkeley Burke.

In February it agreed a tie-up with The People’s Pension where members are offered advice for £49.

Overall, LV= posted pre-tax profits of £1m, down significantly from £49m at the same time last year.

The group attributes this to lower profits in its general insurance arm, and in particular higher than expected motor insurance claims.

LV= group chief executive Richard Rowney says: “I’m particularly pleased with the performance of our life and pensions business where total sales have broken through the £1bn mark with growth in all product lines.

“We continue to see a trend towards blended and hybrid products following the Government’s pension reforms as people increasingly exercise their ability to choose how they fund their retirement.”