LV= doubles H1 profit and announces protection expansion

Retirement sales were up 15% due an increase in demand for income drawdown, which saw sales rise 45% year-on-year following the pension freedoms.

In its interim statement, LV= said that its flexible guarantee bonds are also proving to be very popular with those approaching retirement resulting in year-on-year sales increasing by 136%. Sales of its fixed term annuities have risen by 18% which the firm said proves that annuities will continue to play a role in helping retirees to fund their retirement.

However during the same period, LV= saw equity release sales drop to £33m from £57m in the same period last year.

On the other hand, the firm saw a 50% increase in income protection sales, and has announced that it will enter the business protection market later this year.

Mike Rogers, LV= Group Chief Executive, said:

"A doubling of profits in the first six months of 2015 is a strong result. We have achieved this despite high levels of competition continuing in general insurance and a shift in the buying behaviour of retirees meaning the products we are selling in our retirement business have changed.

"Our capital position remains strong with excess capital at £714 million compared to 2014 year-end of £689 million. The developments required for the transition to the Solvency II regime continue to be a key focus and we are on track to comply with the requirements with effect from 1 January 2016.

"Providing a great service to our customers is very important to us, and a key differentiator, so we are delighted to remain the UK's most recommended insurer, according to YouGov. Our life insurance business has been voted ‘most trusted' by consumers in the Moneywise awards and our general insurance customer satisfaction rate of 83% reporting to be ‘very' or ‘extremely' satisfied is very good. Renewal rates of over 80% of direct home and car insurance customers further demonstrates our strength of service."