LV= has seen a drop in sales for its retirement solutions products as defined benefit (DB) transfers dwindled, its half-year results have revealed.
The insurer recorded £831m of new business for retirement solutions in the first half of 2018, down 3% from £857m in the same period last year.
Overall, its pension sales fell from £656m to £614m, while annuity sales dropped £9m to £60m.
LV= said it had "seen lower DB to defined contribution (DC) transfers following record levels in 2017", but expected that the launch of new investment funds would stimulate growth in H2. The insurer has signed a contract with Vanguard to introduce 10 low-cost index funds in its pension investment portfolio.
While total new business contribution in its life division was down £6m, retirement products marginally-increased, landing at £12m from £11m the previous period.
Operating profit within the division was up 171%, however, rising from £7m in the first half of 2017 to £19m this year.
The firm's overall operating profit fell by £14m in comparison to H1 2017, which the insurer blamed on increased claims following the ‘Beast from the East' and Storm Eleanor earlier in the year.
Group chief executive Richard Rowney said the reduction in pension sales "was expected" after the high volume of DB to DC transfers last year.
"We enter the second half of the year with both of our trading businesses in good health and a clear vision for the future," he continued.
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