Legal & General this week reported bumper annuity sales which increased by an impressive 13 per cent to £98m last year. In 2008 the company generated £87m of revenue from annuity sales, indicating a marked increase this time round. The company said the increase was partly due to increased product sophistication as well as “new distribution opportunities for the rise.” With pension providers now using increasingly advanced methods for profiling annuitants, it seems that this more accurate pricing structure is working in their favour.
However, it was not all good news with individual pension sales falling 17 per cent to £272m in 2009, a drop of £55 million on the previous year. Tim Breedon , the CEO at L&G gave this comment with regard to the company’s results “…Legal & General’s strategy of increasing efficiency and concentrating new business activity in the markets we consider to be most attractive in terms of growth potential and return on capital is delivering.”
