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Catch up with the latest press releases from LV=

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LV= announces general insurance half year results for 2011

Press release: 02/08/2011

LV= announces its half year 2011 general insurance results.

Half year 2011 financial highlights:

  • Strong growth in premiums (29%) to £704million

  • Trading profits up 51% to £53million

  • Combined ratio 98.1%

  • LV= UK’s fourth largest car insurer

  • Continued excellent customer satisfaction scores

6 months 2011 (unaudited)

6 months 2010 (unaudited)

Gross written premiums

£704m

£547m

Trading profit*

£53m

£35m

Profit before tax

£52m

£34m

Loss ratio

73.6%

75.2%

Expense ratio

24.5%

26.7%

Combined ratio

98.1%

101.9%

Motor in-force policies

2,691k

2,116k

Total in-force policies

3,599k

2,967k

*Trading profits are underwriting profits plus investment return



Overview

The general insurance business of LV= continued its track record of combining strong growth in customer numbers with increased profitability. During the first half of 2011 premium income grew by more than 29% to £704m and trading profits increased to £53m, from £35m in the first half of 2010.

John O’Roarke, managing director of LV= general insurance, commented: “This is very satisfactory performance in what remains a challenging time for the industry as a whole. The investments we have made over the last four years in building a highly skilled, people-focused, multi-channel insurer continue to generate strong returns.”


Excellent customer service a priority

Providing an excellent level of customer service continues to be a priority for LV=. Customer satisfaction remains extremely strong at 96.5%*. Award wins in the first half of 2011 include accolades from the Institute of Customer Service, the Claims Awards, Moneyfacts and Intelligent Choice. LV= is also a Which? recommended best buy for car and home insurance and benefits from Defaqto five star ratings for its car, buildings and contents insurance.


Strong progress in two core channels

The first half of 2011 saw continued growth across both distribution channels. In the broker channel, premiums written grew by 18% to £354m compared to H1 2010. Broker motor personal lines sales were up strongly, by 13% to £281m, through a combination of rate-hardening and growth in policy volumes. In commercial lines LV= achieved very strong growth in premiums written with an increase of 38% to £70m.

LV=’s direct business also grew strongly, increasing the number of in-force car insurance policies by 17% to 1,311,000. Gross premiums written in direct car insurance rose by 58% to £273m for the half year.


Outlook for 2011

Commenting on the outlook for the rest of 2011, John O’ Roarke, said: “Priorities for the remainder of 2011 include continuing steady growth across both channels and keeping a tight focus on personal injury and fraud costs. This will enable us to continue to offer great value products to our customers and continued strong returns for members.”



Notes to editors

General insurance results full year 2010 (audited)

Gross written premiums

£1,182m

Trading profit*

£30m

Profit before tax

£35m

Loss ratio

79.6%

Expense ratio

24.6%

Combined ratio

104.2%

Motor in-force policies

2,485k

Total in-force policies

3,369k

*Trading profits are underwriting profits plus investment return

LV= and LV= Liverpool Victoria are trademarks of Liverpool Victoria Friendly Society Limited. LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies.
LV= employs around 4,500 people, serves over four million customers and members, and manages around £8.1bn (as at 30 March 2011) on their behalf. We are also 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.
www.LV.com