LV= takes a big hit after annuity rules are changed

County championship sponsor LV= saw its annuity sales hit for six during the first three months of the year ahead of the introduction of radical industry reforms.

The company, which has 5.7 million customers, enjoyed a strong start to 2015 with falling claims in its general insurance arm and rising life and retirement sales boosting its overall performance.

However, as expected, annuity sales were down from £115 million in 2014 to £70 million in the period ending March 31. This was just days before radical reforms were introduced handing savers more freedom with their pensions.

From April 6, retired workers have not had to buy an annuity when they finish work.

“The overall increase in retirement sales reflects the wide breadth of products we now offer customers,” boss Mike Rogers said.

“Retirees are increasingly choosing income drawdown products and this is reflected in the decrease in annuity sales, which we expected following the Budget changes announced last year.”