Legal & General is focusing on new areas including lifetime mortgages and equity release in the face of falling individual annuity sales following the pension reforms.
Annuity sales in L&G's retirement arm dropped following the government's pension freedoms which no longer require pensioners to buy an annuity. Individual annuity sales were £99m, down 60% from £244m the previous year. Previous figures showed the firm had seen its individual annuity sales drop 40% in the first quarter of last year. The group said it expected 2015 sales of individual annuities to be around 50% of 2014 new business volumes. Bulk annuity sales were £655m, down from more than £3bn in Q1 2014. The group reported annuity assets of £45.6bn in Q1, up 19%, and a 77% fall in...
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