But the group expects its overall margins in its retirement solutions sector, which covers pensions, annuities and equity release sales, to be negatively affected due to the annuity shake up.

In March’s Budget statement the Chancellor announced that pension holders would not have to purchase an annuity giving consumers the freedom to choose where to invest their retirement savings.

In the first three months of the year annuity sales increased to £11m up from £9m for the same period in 2013.

But Mike Rogers, LV= Group chief executive, said: “We expect to see lower levels of annuity sales over the coming months as consumers defer decisions until the new regime takes effect.”

He said the group is well placed over the medium term to benefit from the new landscape as consumers increasingly shop around to find the right product for their personal circumstances.

In the same three-month period protection sales remained static at £7m.

LV= recently updated its critical illness policy to increase the number of conditions it covered to 64.

And its policy has now been changed to pay benefits based on the a more simple definition of being unable to perform the customers own occupation.