Canada Life has reported record sales of individual annuities in 2023 of £1.2bn, up 121% on 2022.

The provider said the annuity surge helped propel UK sales to record levels in 2023, according to annual figures reported today.

The firm benefited from the annuity boom as rising annuity rates brought a flood of new buyers and higher demand.

Canada Life saw record sales of individual annuities as well as and £621m in bulk purchase annuities.

The firm also reported £2.2bn in wealth and asset management sales, including offshore bonds and home finance (equity release) sales of £247m.

However, the firm has suffered a setback in recent times. In January it announced it had closed its onshore bond and personal pension plan to new business with immediate effect after the deciding it could no longer be competitive in those areas.

Referring to record annual sales figures, Lindsey Rix-Broom, CEO, Canada Life UK, said the firm had coped well with “ever-changing” headwinds.

She 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."

In group protection she said the firm’s in-force premium growth had been good. Proposition developments included the launch of an “industry first” for group protection, Toothfairy, a virtual dentistry support service.

UK offshore bond business market share grew by 27% and she said the firm saw more opportunity in this sector.