LV= is aiming to launch its fixed-term annuity in the first quarter of 2010.
Money Marketing revealed in August that LV= was looking to launch a temporary annuity to rival Living Time’s products.
Living Time’s income plan offers customers a guaranteed income for a minimum of three years, up to age 75 and a guaranteed capital value at maturity, which is determined at outset.
Since then, a number of product providers, including Aviva and Metlife, have expressed an interest in launching similar offerings.
LV= head of annuities Matt Trott says: “We are aiming to launch in the first quarter. Things are progressing well with the product. I think there are opportunities in this area.”
Hargreaves Lansdown pensions analyst Nigel Callaghan says: “It is fantastic that LV= is aiming to launch so soon. The more the merrier, I say.
“This is where the money is and it will be a huge growth area. I am only surprised it has taken someone 12-18 months to follow Living Time.”
Last week, AIG revealed plans to sell off Alico, which underwrites Living Time’s fixed-term annuities.