Royal London has reported huge gains in its life and pensions business over the last 12 months, boosted by the pension freedom reforms.
Drawdown sales leapt 67% on 2014 to £1.3 billion. Individual pension sales rose 39% to £1.9 billion.
Overall its life and pensions new business grew 40% to £6.7 billion.
Royal London said this marked a doubling in pensions sales compared to 2011.
The provider is also benefiting from auto-enrolment, which came into force in 2012 and will continue to be rolled out to small businesses until 2018.
Group pension sales grew 27% over the period to £2.7 billion.
Its direct to consumer life insurance business, established in 2014, saw sales more than quadruple, 385% from £34 million to 165 million over the 12 months to 31 December 2015.
Royal London Asset Management saw inflows of £3.1 billion, down on the 3.8 billion seen by 31 December 2014.
Funds under administration on its Ascentric wrap platform increased 13% to £10.1 billion, from £8.9 billion.
Group chief executive Phil Loney said: ‘To put this into context over the last four years sales from our life assurance range and pension range have more than doubled. Our asset management and platform business both saw good growth in total assets despite a very volatile market.’
Loney also took the opportunity to warn chancellor George Osborne against radically reforming the pension tax relief system with a move to ISA-style pensions where contributions are taxed but income is paid tax free.
‘There remains a strong possibility that ISA-style pensions, even with an incentive thrown in, will simply turn people away from long term saving.’
Source: New Model Adviser