information

We use cookies to give you the best possible experience online. By continuing to use our website, you agree to receiving our cookies on your web browser. Visit our cookie policy page to find out more and how to change your cookie settings.

skip to main content

Catch up with the latest press releases from LV=

Large green heart

LV= announces General Insurance Half-year results

Press release: 30/07/2012

Half year 2012 financial highlights:

  • Premium income grew by 6% to £747 million

  • Trading profits increased by 13% to £62m

  • Combined operating ratio (COR) improved to 97.0%

  • Return on capital employed increased to 19.3%

  • 250 new jobs created in 2012 so far

6 months 2012 (unaudited)

6 months 2011 (unaudited)

Gross written premiums

£747m

£704m

Trading profit*

£62m

£55m

Profit before tax*

£53m

£52m

Loss ratio

74.1%

73.6%

Expense ratio

22.9%

24.5%

Combined ratio

97.0%

98.1%

Return on capital employed

19.3%

18.5%

Motor in-force policies

3.0m

2.7m

Total in-force policies

4.0m

3.6m

*Trading profits are underwriting results plus investment income
*Profit before tax is after capital financing costs and amortisation


The general insurance business of LV= has continued to grow steadily in the first half of 2012. The company achieved overall premium growth of 6% compared to the same period in 2011 and now has around 11% market share in private car insurance.

John O'Roarke, managing director of LV= general insurance, commented: "Our plan for 2012 envisaged increased profitability and steady growth and that is exactly what we have achieved in the first half of the year. Trading profits and premium income are both up compared to 2011 and our combined ratio has improved further to 97.0%, which we expect to compare favourably against the market as a whole."

The direct business grew premium income to £417m GWP, an increase of 19% compared to 2011 and now insures 1.7 million cars and more than half a million homes. Premium volume in the personal lines broker channel was down 12% to £250m in the first half of 2012, due to increased competition. Broker commercial lines continued to grow with 14% year-on-year growth in premium to £80m.

LV= continues to focus on ensuring customers receive an excellent level of service. This strategy has resulted in exceptional levels of customer satisfaction for the first half of 2012 with 78% of customers saying they are very or extremely satisfied and over 80% saying they would recommend LV= to friends and relatives.

It has also been an award winning start to 2012 with LV= picking up numerous accolades, including the prestigious General Insurer of the Year award at the British Insurance Awards earlier this month. Other customer service focused wins of particular note include the Moneywise award for car and home insurance, the Moneyfacts award for car insurance and Which best buy status for car and travel insurance.

Commenting on the outlook for the rest of 2012, John O’Roarke said: "The UK non-life market continues to face considerable challenges including excessive personal injury claims frequency, uncertain investment returns and the ongoing adverse weather conditions. Despite these challenges, we remain confident that the quality of our people and the customer service they provide will ensure that we continue to generate strong returns on our members' capital."

LV= group CEO, Mike Rogers, said: "This is a strong performance from our GI business which goes from strength to strength in a very competitive market. Our positioning in the market place of offering good value, being easy to do business with and caring for our customers is proving a winning formula."

About LV=

LV= employs 5,500 people and serves over five 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 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 trades unions.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.