Canada Life UK has reported its highest-ever sales of £4.3bn in 2023, as well as a 121% increase of individual annuities sales compared to 2022.
This is despite the firm labelling 2023 a “challenging period”.
The UK financial services provider witnessed sales of £1.2bn of annuities in 2023, with £0.6bn in bulk purchase annuities sales.
Additionally, Canada Life also saw £2.2bn in wealth and asset management sales and UK business base earnings of £229m.
Canada Life UK chief executive Lindsey Rix-Broom said: “We’ve delivered a strong performance in challenging conditions, which demonstrates how we, as a well-diversified business, can weather the ever-changing headwinds. Our single-minded focus on delivering great customer outcomes means we are well placed to support advisers and their clients in a period of economic and geopolitical uncertainty.
“Our record sales of individual annuities have been driven by the high levels of income available, coupled with the demand from customers for secure income solutions in uncertain times, including our fixed-term options.
“We continue to invest in our bulk annuity business, and secured our first deferred members transaction. In total, we completed eight deals last year, of which five included deferred members, and we are very positive about the potential for this business in a very active market.”
Canada Life protection business also saw the launch of Toothfairy, a virtual dentistry support service and an industry first for group protection.
Its asset management side of the business also performed well with “strong external fund flows, driven by the interest in the Sterling Liquidity Fund and our multi-asset offering.”
Furthermore, it has “significantly expanded” the number of discretionary clients using its funds.
Looking to the future, Rix-Broom added, “We continue to invest in modernising our systems, processes and introducing new digital technology that will further benefit customers and advisers.”
But why did Canada Life pull out of the pensions market?! I can understand that the pension product struggled when annuity rates were so low for so long, but it’s now that it is needed – a combined flexible pension with a guaranteed annuity – all within one product! Unique and perfect for current conditions!
Agreed Chris – was a great product and has perfect conditions for its use.
The annuity market seems to have fallen over though (not just Canada Life). Underwritten quotes are taking in excess of 2 months – I believe Canada Life are only using portal requests now. To be honest why offer lifestyle/health annuities when you cannot accept quote requests. I guess most annuity customers are 65 plus in age, and plenty will have had a health issue during their lives giving enhanced rates. Annuity providers should be ashamed of themselves and consider how this serves the ethos of Consumer Duty.
Completely agree, Graham. Seriously, I could put so much business their way at the moment! The ability to get an annuity at current high rates, but have the income reinvested until it is actually needed.
I looked at the 7IM / Just product, but it only offers minimal options.
So, why haven’t they invested profits in staff so that advisers can actually get to speak to someone? I doubt there was a 121% increase in staff numbers!