Variable annuity sales rose by 34% to £445m in the first half of 2010 compared to H2 of 2009, according to research from Towers Watson.
Between Q1 and Q2 of 2010, the value of variable annuity sales remained steady, rising by £1m from £222m to £223m.
"It is encouraging that there has been a bounce in sales compared to the second half of 2009," says Andy Sanders, senior consultant at Towers Watson.
"However those sales were much reduced relative to the first half of 2009, prompted by product redesigns and the exit of the Hartford from the market place as a result of the impact of the financial crisis.
"Currently, reaching the 2008 and 2009 billion pound of sales is looking challenging for this year.
"It will be interesting to see what impact further innovation and/or new product launches have on sales in the remainder of 2010."
What made financial headlines over the weekend?
Q2 net sales dropped almost 50%
‘Important to have an anchor’
Lack of innovation for solutions