LV announces strong performance in first half of 2010
LV=, the mutual insurance, retirement and investment group, has announced a strong performance in the first half of 2010, with sales and trading profits significantly up on the same period of 2009.
Life cover sales are up 40% to £63.5m on an APE (Annual Premium Equivalent) basis, compared to £45.2m in the first half of 2009. This includes retirement business seeing a 36% increase with an APE of £48.3 (H1 2009: £35.4m) while protection and savings businesses saw a 55% increase with an APE of £15.2m (H1 2009: £9.8m).
General insurance GWP (Gross Written Premiums) were up 37% to £546.4m (H1 2009: £397.5m), this includes including new business GWP up by 39% to £85.0m (H1 2009: £61.3m). The results also confirm that LV= is now fourth biggest private car insurer (according to FSA returns 2009).
In asset management (LVAM), investment performance shows continued strong outperformance against benchmark for the with-profits portfolio. 85% of eligible funds are ranked in the first or second quartile of their peer groups for performance in the first six months of 2010 while H1 2010 sales exceed the total for 2009 (excluding third party institutional sales).
Mike Rogers, LV= group chief executive, commented: "Although the market environment remains challenging, our focus has paid off enabling us to continue to grow profitably across the LV= Group. Our trading performance in terms of both sales and profitability was significantly up on the same period last year.
"In the life business, pensions and annuities spearheaded a strong performance, driven partly by legislation change moving the retirement age from 50 to 55. Profitability in life was also enhanced by improved cost control and by our development of new IFA accounts.
"In general insurance, both the direct and broker channels performed strongly. We have taken the opportunity in current market conditions to combine increased rates with growth in business volumes and this has driven improved profitability.
"Investment performance for our with-profits policyholders was ahead of benchmark. In addition, our development of a strong retail fund management franchise continues successfully, boosted by the significant increase in Standard & Poor’s and Citywire ratings achieved for our funds and fund managers.
“Market conditions in the second half of 2010 remain challenging but we expect our market focus and cost control will continue to deliver trading profit growth in the second half.”
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Notes to editors:
APE = Annual Premium Equivalent
This is a measure comprising new regular premium sales plus 10 per cent of single premiums.
GWP = Gross Written Premiums
These represent the revenue (premiums) expected to be received over the life of a general insurance contract.
LV= and LV= Liverpool Victoria are trademarks of Liverpool Victoria Friendly Society Limited (LVFS) and LV= and LV= Liverpool Victoria are trading styles of the LVFS group of companies.
LV= offer a range of insurance products including home insurance, car insurance, life insurance, pet insurance and over 50 life insurance.
LV= employs over 4,000 people and serves more than 3.8m members and customers. LV= is the UK’s largest friendly society and a leading mutual financial services provider.
LVFS is authorised and regulated by the Financial Services Authority and entered on the Financial Services Authority Register No. 110035. LVFS is a member of the ABI, AFM, and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.
69 Park Lane
0208 256 6714
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