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Catch up with the latest press releases from LV=

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LV= announces Strong New Business Growth in first half of 2009

Press release: 09/09/2009

Mutual insurance, investment and pensions group LV= has announced strong new business results for the six months ending 30 June 2009.



Mike Rogers, LV= Group Chief Executive, comments:

"Despite a difficult environment, our focus on attractive markets and helping customers to look after what they love has served us well. As a consequence, trading in the first half of 2009 was strong, with both sales and operating profits well up on the previous year.

"In our life business, excellent cost control more than offset subdued market volumes for protection sales. Our retirement business continued to grow market share across the pension consolidation, enhanced annuity and equity release markets, although pension volumes were impacted by market volatility and proposed taxation changes.

"Our general insurance business, benefiting from the integration of Highway Insurance, managed to more than offset exceptionally low investment returns through strong sales, rate increases, and improved underwriting performance.

"In asset management there have been strong in-flows of funds from our life and general insurance franchises, and the business has also started to gain traction in the external market. Relative to benchmarks our investment performance was strong.

"There seems little reason to believe that market conditions in the second half of 2009 will be any more favourable. However our momentum and competitive positioning mean that we expect sales to continue to trend higher, and costs to remain well contained."


Notes

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 the insurance contract.

OEIC = Open Ended Investment Company

OEICs are hybrid investment funds that have some of the features of an investment trust and some of a unit trust. Like investment trusts, OEICs are companies that issue shares on the London Stock Exchange, and which use the money raised from shareholders to invest in other companies. Unlike investment trusts, they are open-ended which means that when demand for the shares rises the manager just issues more shares.

With an investment trust, if demand exceeds supply, the response may be a rise in the share price. The price of OEIC shares is determined rather differently. More like a unit trust, in fact, with the key factor being the value of the underlying assets of the fund. But in contrast to unit trusts, there is no bid/offer spread with OEICs, so the price of the shares should be the same whether you are buying or selling.


Analysis of Life APE and Insurance GWP sales figures

Life sales by product APE £m

H1 2009

H1 2008

Change

H2 2008

Full Yr 2008

Pension

19.1

20.0

-4%

21.6

41.6

Annuity

13.9

7.6

83%

13.3

20.9

Equity Release

2.4

1.2

100%

1.4

2.6

Retirement Total

35.4

28.8

23%

36.3

65.1

Protection

8.4

7.8

8%

7.8

15.6

Savings & Investment

1.4

3.1

-55%

2.0

5.1

Life Total

45.2

39.7

14%

46.1

85.8




General Insurance sales by
channel GWP £m

H1 2009

H1 2008

Change

H2 2008

Full Yr 2008

Broker

192.4

19.2

902%

55.1

74.3

Direct including aggregator

61.3

47.4

29%

52.9

100.3

New business

253.7

66.6

281%

108.0

174.6

Renewals

134.6

127.9

5%

122.8

250.7

Britannia Rescue

9.1

12.0

-24%

8.6

20.6

General Insurance Total

397.5

206.5

92%

239.4

445.9




Sales by product GWP £m

H1 2009

H1 2008

Change

H2 2008

Full Yr 2008

Car Insurance

313.6

132.9

136%

164.2

297.1

Home Insurance

58.2

57.6

1%

59.2

116.8

SME, Britannia & other

25.6

16.0

60%

16.0

32.0

Total

397.5

206.5

92%

239.4

445.9


LV=

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= employs more than 3,800 people, serves around 3.6 million members and customers, and manages around £7 billion on their behalf. We are also the UK's largest friendly society (Association of Friendly Societies Yearbook 2008/2009, total net assets) 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, AMI, AFS and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.

www.lv.com