About £15m of annuity sales at Legal and General were cancelled following the radical reforms to pensions in the Budget.
The firm reported today that individual annuity sales were down 40% to £244m compared to Q1 2013 - £406m - including an approximate £15m impact from cancellations during the extended cooling off period which was offered to customers after the Chancellor's announcement.
Senior managers said they expect the individual annuity market to contract by about 50% in 2014 and by a further half in 2015. However, annuity assets were up 15% to £38.3bn and it was boosted by what was reportedly the UK's largest ever Bulk Purchase Annuity transaction, the £3bn deal for the ICI Pension Fund.
Overall results saw record sales in Q1.
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Net cash and operational cash rose by 21% and 6% respectively - their highest-ever levels.
LGIM assets under management of £463bn was an all-time high and Cofunds grew assets under administration to £66bn.
In a statement to the Stock Exchange the firm said: "We are on track in 2014 to exceed the £4.1bn annuity premiums we wrote in 2013 with a strong quote pipeline in bulk annuities.
"We expect the individual annuity market to contract by about 50% in 2014 and by a further half in 2015.
"The Chancellor of the Exchequer and the Pensions Minister have supported a clear pro-choice, pro-consumer agenda to modernise pensions: a direction of travel that has been clear for some time.
"We agree with these objectives and welcome the Budget reforms, which we expect will accelerate the evolution of a modern pensions market in the UK.
"We believe these changes will be good for customers and also for Legal & General since we have aligned our diversified businesses to benefit from these trends."