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Canada Life has reported doubled annuity gross sales in comparison with final 12 months, based on its UK half 12 months monetary outcomes.
Many annuity suppliers have seen gross sales soar over the previous 12 months as annuity charges have climbed.
The supplier mentioned annuity gross sales within the half 12 months have been 100% up on the identical interval in 2022, breaking data.
New enterprise gross sales for particular person annuities at Canada Life UK have been £441m in H1 2023, in comparison with £220m in the identical interval in 2022.
Might 2023 noticed over £100m in new pension enterprise in a single month, the best gross sales determine for the reason that Pension Freedoms of 2015.
The corporate mentioned its annuity gross sales enhance was as a result of important rise in annuity charges over the previous 12 months and a backdrop of macroeconomic uncertainty driving demand from prospects for assured earnings merchandise.
Lindsey Rix-Broom, CEO, Canada Life UK, mentioned: “We’ve skilled a rare comeback for particular person annuities, pushed by the numerous enhance in worth supplied from the returns out there, mixed with prospects in search of earnings safety in occasions of financial uncertainty. The document breaking efficiency of annuities has been a serious driver of latest enterprise gross sales and the outlook for the second half of the 12 months appears to be like equally very optimistic.
“We stay focussed on supporting our prospects and communities throughout difficult financial occasions. The range of our enterprise throughout wealth, retirement, group safety and asset administration means we’re nicely positioned to satisfy the evolving wants of our prospects and their advisers.”
A benchmark annuity for somebody aged 65, with no pre-existing well being or way of life situations, would pay within the area of seven%, Canada Life mentioned. That is primarily based on a £100,000 buy value, 10-year assure, no well being or way of life components. 15-year gilt yields sourced from ft.com.
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