Annuity sales at LV= are down 15 per cent year-on-year but Sipp and drawdown new business rose 8 per cent, the provider’s 2014 trading statement reveals.
Sales within the provider’s retirement business decreased by 1 per cent overall, from £1.14bn in 2013 to £1.13bn in 2014.
Within the division, annuity sales fell 15 per cent, from £457m to 387m. But pensions sales – which includes Sipp and drawdown contracts – increased by 8 per cent, from £587m up to £636m.
Equity release sales also rose, up 15 per cent year-on-year from £93m in 2013 to £105m last year.
In addition, the business update reveals LV= has hired 70 new operational staff, some of whom will be supporting advisers through the Retirement Desk.
LV= life and pensions managing director Richard Rowney says: “As expected, following the Chancellor’s announcement that annuities will no longer be compulsory, we have seen a drop in sales in enhanced annuities, however sales have been good in other products, particularly in equity release, fixed term annuities and bonds, as people increasingly choose to take other retirement income products that offer a level of guarantee.”
He adds: “As part of our commitment to support advisers, we have recruited an additional 70 service employees, to help with increases in business volumes, changes in income requirements and general queries.”