LV= has reported a surge in annuity business during the first half of 2012.
The provider’s half year results, published today, reveal life and pensions sales rose 24 per cent, from £69.3m in the first six months of of 2011 to £86m this year.
Annuity sales increased 48 per cent, from £24.3m to £36m, while protection sales were up 20 per cent, from £13.4m to £16.1m.
Pensions sales increased 5 per cent in the first six months of the year, from £25.2m to £26.4m, while equity release new business rose 9 per cent, from £4m to £4.3m.
LV= managing director of retirement John Perks says: “There has been a big push from the industry and the Government around enhanced annuities and using the open market option, and we are starting to see some real benefit from that.”
In April this year, LV= made changes to its critical illness cover by increasing the number of conditions and partial payments covered.
LV= managing director of protection Iain Clarke says: “We released our new critical illness contract in April which has had a massive impact on new business.
“We have gone for high end customers and increased our prices because we think there is a market for a high quality product.”