LV= Mutual bonus
Find out about the new mutual bonus.
A strong and growing business
LV= is a mutual insurer which means we're owned by our 1.1m members, people like you. We are one of the strongest mutuals in the UK with £958m* of capital resources. * As at 31/12/11
A bright future is ahead
Our business has been through a major turnaround in the last few years, witnessing significant growth in the number of policyholders, employees and profits.
We believe LV= will continue to grow and go from strength to strength. Because of this and our consistent financial strength we believe it is right to pay a mutual bonus.
Profits and resources
- LV= underlying profit £99.4m, up 10% on 2010
- LV= capital resources £958m
These figures were correct as at December 2011, based on 2011 performance.
Tell me more
The mutual bonus scheme is designed to reward qualifying members for their ownership of the Society and the risks taken in supporting the establishment and growth of the group's trading businesses in life and general insurance. At present only members with with-profit policies qualify for mutual bonus, but this may not always be the case.
We have declared our first mutual bonus of 1% of asset share, representing a total of £18.6m. This was used to increase the value of eligible LV= with-profits policies that are invested in the LVFS with-profits fund. Policies we acquired from the Royal National Pension Fund for Nurses (RNPFN) in 2001 do not invest in the LVFS with-profits fund, and so these members did not qualify for the mutual bonus.
The first mutual bonus declaration was based on the financial performance of the LV= group for 2011. It will typically add £100 to a qualifying with-profits policy currently worth £10,000 and will ordinarily form part of the amount payable when the policy matures or is cashed in (annuitants will receive an increase in their income). It will be on top of the existing regular and final bonuses which our with-profits members already receive.
