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Mutual insurance, retirement and investment group LV= issues its trading statement for the full year from 1 January to 31 December 2014.

General insurance sales

General insurance sales

3 months ended
31 December 2014

12 months ended
31 December 2014

12 months ended
31 December 2013

Gross Written Premium (GWP)

£0.31 billion

£1.39 billion

£1.45 billion

GWP by channel:

- Direct

£173 m

£789 m

£824 m

- Broker

£141 m

£605 m

£621 m

GWP by product:

- Motor (private)

£205 m

£948 m

£1,054 m

- Home

£44 m

£182 m

£155 m

- Commercial inc. SME

£57 m

£227 m

£201 m

- Other

£8 m

£37 m

£35 m

Motor in-force policies

3.0 m*

3.0 m

3.1 m

Total in-force policies

4.6 m*

4.6 m

4.4 m

* As at end of December.

Life insurance sales

Life insurance sales

3 months ended
31 December 2014

12 months ended
31 December 2014

12 months ended
31 December 2013

Life overall (PVNBP)

£0.37 billion

£1.51 billion

£1.43 billion


£266 m

£1,128 m

£1,137 m

- Pensions

£183 m

£636 m

£587 m

- Annuities [1]

£62 m

£387 m

£457 m

- Equity release

£21 m

£105 m

£93 m


£47 m

£217 m

£195 m

Savings & Investments [2]

£56 m

£168 m

£101 m

Present Value of New Business Premiums (PVNBP) is the total of new single premium sales received in the year plus the discounted value, at the point of sale, of the regular premiums we expect to receive over the term of the new contract sold in the year. For equity release this represents the amount of loans provided. We have moved to reporting on a PVNBP basis rather than APE (Annual Premium Equivalent) which we have reported historically as we believe PVNBP is a clearer representation of sales.

  1. Annuities sales can be broken down as enhanced £205m (2013: £320m), fixed term one year £43m (2013: £nil) and fixed term greater than one year £139m (2013: £137m).
  2. Savings and investments are predominantly with-profits investment bonds.

Mike Rogers, LV= Group CEO commented:

"Looking at sales over the full 12 months of 2014 I am pleased with our performance. Both business areas saw turbulent markets but sales have continued to be strong.

"2014 was a challenging year for general insurance with depressed motor premiums affecting the business. However despite this our sales have continued to be buoyant and we have grown our business by over 180,000 new policies. We now have 4.6 million in-force policies with the majority of our recent growth in non-motor lines, primarily home and SME, reflecting our desire to diversify our business and build a balanced portfolio.

"Private car insurance remains our most significant business line and we are the third largest insurer in the UK with around 12% market share; however, due to the current weak rating environment, we have chosen not to grow in this line of business and have focused on profitability rather than top line income.

"In our life business we are reporting sales up £80 million compared to 2013; however there has been a distinct change in product mix and a reduction in margins.

"As expected, following the chancellor's announcement that annuities will no longer be compulsory, we have seen a drop in sales in enhanced annuities, however sales have been good in other products, particularly in equity release, fixed term annuities and bonds, as people increasingly choose to take other investment products that offer a level of guarantee. Our retirement business is well placed for future opportunities with our comprehensive, customer-focused proposition.

"Our protection sales of £217 million are up 11% compared to 2013 as we continue to target market segments where we can clearly demonstrate value to our customers. In protection we aim to be a top five player competing on quality of proposition, whilst recognising the importance of price and we maintained our leading position as the first choice of advisors for protecting incomes.

"Key factors supporting these continued strong sales are our unique people based culture and focus on providing an excellent level of service to customers. The strength of our customer service proposition has most recently been demonstrated in a report from the Institute of Customer Services in January which showed not only are we the number one insurer for customer service but we are amongst the highest performing businesses in the UK across all sectors comparable against John Lewis, Marks & Spencer and First Direct. This is a tremendous accolade for our business and our people.

"Overall, despite the challenges we faced in 2014, sales have been good and our focus on good value products and a market-leading level of service for our customers means we can confidently expect to see continued attractive returns for members over the medium term."

For further information please contact:

Jon Sellors,, 020 7634 4447 / 07711 701 806

About LV=

LV= employs over 6,000 people and serves over 5.8 million customers with a range of financial products. We are the UK's largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We are currently the UK's number one brand for Insurance and Investments, according to the 2015 YouGov Brand Index Buzz Rankings.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.