Lloyds reported sales through its intermediary channel fell 35% in 2009 contributing to a 26% drop for UK life, pensions and investments sales to £12.97bn.
Overall, Lloyds Banking Group filed an operating loss of £6.3bn for 2009, after it continued to struggle with billions of pounds of bad loans.
However, this was a slightly better than analysts expected and not as bad as the £6.7bn operating loss reported for 2008.
Sales through Lloyds' UK Life and Pensions arm, which includes Scottish Widows and business written through the Clerical and Halifax brands, was hit in all areas apart from protection. Here new business rose from £492m to £519m over the year.
Pension sales were severely depressed with individual new business nearly halving from £4.22bn in 2008 to £2.28bn last year. In total, UK life and pensions sales dropped from £14.14bn in 2008 to £9.27bn, although OEIC sales helped provide some boost to this part of the business.
Lloyds says: "In addition to the general contraction in the market, sales were significantly impacted as the intermediary sales forces were integrated and a number of HBOS legacy products with poor returns were withdrawn. These factors led to sales through the intermediary channel reducing by 35%.
"Bancassurance sales, excluding payment protection, were resilient given the challenging market conditions with a reduction of 11% from 2008. This includes Scottish Widows sales through the bancassurance network which showed good growth of 18%. Sales of OEIC products delivered strong growth of 12%."
On the asset management side of the business, excluding the impact of the sale of Insight Investment's external fund management business in November, funds under
management are £23.5bn higher than December 2008's £244.9bn. This is due to strong inflows and a broad recovery in equity values in the second half of 2009.
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