An increased demand for drawdown and a £95m sales boost from pensions has helped LV= double its group operating profit for the first half of the year.
Profits jumped by 103% to £79m, compared to £39m in the first six months of 2014.

New business for pensions soared to £402 million – up from £277 million in the same time frame.

The London Stock Exchange announcement also showed life operating profit was up to £12m from a £5m loss, while profit before tax and mutual bonus for the group was 4% higher at £49m, a rise from £47m. Group expenses went up 7% to £300m, rising from £280m last year.

Mike Rogers, LV= group chief executive, said: “LV= offers a wide range of products and we have seen strong sales, up £95m compared to HY 2014. We have seen pensions performing particularly well due to an increased demand for our drawdown proposition, with sales up 45% on this time last year.

“Our flexible guarantee bonds are proving to be very popular with those approaching retirement, resulting in year-on-year sales increasing by 136%. Sales of our fixed term annuities have risen by 18% which supports our view that our annuities will continue to play a role in helping retirees to fund their retirement.”

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Meanwhile the company has launched LV= Pension Compass, a range of tools designed to make defined benefit pension schemes members aware of their income options at retirement in light of the new freedoms.

Steve Lewis, head of distribution at LV= Retirement Solutions, said: “LV= Pension Compass will ensure that pension scheme members are able to take advantage of the wider range of pension income solutions now available to them and to support pension trustees in discussions they have with members about their options.”