The firm, which is part of Lloyds Banking Group, blames a “general contraction of sales” in the IFA market for the decrease.
Life and pensions business dropped 6 per cent last year, to £7.19bn on a PVNBP basis, according to results released today.
Individual pension sales increased 3 per cent to £2.12bn in 2008, boosted by a 75 per cent increase in sales of the firm’s Retirement Account.
Corporate pensions business jumped 16 per cent to £2.48bn. Retirement income sales dropped 10 per cent to £939m in 2008. Protection sales rallied 15 per cent over the year to £317m.
Scottish Widows insists its capital position is strong, announcing a surplus at year-end of £0.8bn, with additional surplus within the long-term fund totalling around £1.5bn. It says this position would be unchanged in the event of a 40 per cent reduction in equity markets.