Aegon UK's new protection single premiums for annuities and protection fell by 53% in 2014, with sales of £1.6bn in 2014 compared to £3.4bn in 2013.
In the third quarter the fall in sales was 17% with £323m of new life and protection single premium sales.
The insurer's life and protection earnings declined to £77m in the full year of 2014, however earnings increased by £2m in the last quarter of 2014.
Life and protection recurring premiums annualised for 2014 were up to £622m from £516m.
Underlying earnings before tax for Aegon UK's life business were down 9% however overall the insurer saw an increase of 37% to £22m.
Aegon UK's protection volumes increased by 20% in the full year of 2014 compared to 2013 and Q4 2014 compared to Q4 2013 saw an increase of 25%.
The first ten weeks of business of the product performed better than expected and the figures were described as "fantastic" by Aegon's protection director.
Adrian Grace, CEO of Aegon UK said: "2014 was a year of growth for Aegon's protection business and it ended strongly with sales up 25% in Q4 when compared against the same period in 2013.
"We see protection as the cornerstone of financial planning and think it should form part of every adviser conversation with customers given how significant it can be in maintaining people's finances during tough times.
"In addition to the strength of our proposition, we believe the recent growth of the business can be attributed to a high quality underwriting and claims experience for both advisers and their customers and we hope to grow the business further this year."
He added:"We will shortly be announcing some exciting developments to support employers and employees that will also enhance the ability of advisers to provide high value advice services to key employees when they want and need them.
"Our focus is on helping advisers by offering the choice and support they need to help their customers achieve their retirement ambitions in light of the changes ahead."