Individual annuity sales jumped 22 per cent last year at Legal and General, latest results show.
Bucking a wider market trend of falling sales since the pension freedoms, the insurer put part of the spike down to “increased intermediary presence”.
FCA data shows annuity sales from October 2015 to March 2016 for those accessing their pots for the first time came in at 40,000, falling to 36,000 for the six months to March 2019.
Individual sales rose from £795m in 2018 to £970m in 2019 at L&G, as it continued to expand its introducer deals by adding Prudential to its roster in November and built out on its enhanced annuity offering.
On top of introducer deals already in place with Aegon, ReAssure, and Sun Life Financial of Canada, the Prudential deal is predicted to increase total annuity sales for L&G in 2020 by 15 per cent.
L&G’s retirement division operating profit came in at £1.4bn, up from £1.1bn. The firm notes its “target market continues to expand, both in terms of the numbers of retirees and the levels of wealth they hold, driven by ageing demographics and welfare reforms.”
Retail protection premiums in the UK were also up from £1.27bn to £1.32bn, and group protection premiums were up from £329m to £345m.
By J Cash (Money Marketing)