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Catch up with the latest press releases from LV=

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LV= Q3 trading statement

Press release: 28/10/2013

Mutual insurance, retirement and investment group LV= issues its trading statement for the nine month period from 1 Jan to 30 Sept 2013.

General insurance sales

General insurance sales

Nine months ended
30 Sept 2013

Nine months ended
30 Sept 2012

Gross Written Premium (GWP)

£1,127m

£1,147m

GWP by channel:

- Direct

£644m

£643m

- Broker

£483m

£504m

GWP by product:

- Motor (private)

£835m

£891m

- Home

£117m

£108m

- Other

£175m

£148m

Motor in-force policies

3.1m

3.0m

Total in-force policies

4.4m

4.1m


Life and pensions sales

Life and pensions sales

Nine months ended
30 Sept 2013

Nine months ended
30 Sept 2012

Life and pensions overall (APE)

£117m

£126m

Retirement

£87m

£97m

- Pensions

£50m

£42m

- Annuities

£31m

£49m

- Equity release

£6m

£7m

Protection

£22m

£24m

Savings & Investments

£7m

£5m

APE = annual premium equivalent


Mike Rogers, LV= Group CEO commented:

"Despite tough market conditions across the board, sales have been resilient in the first nine months of 2013.

"In general insurance, our strategy of offering competitively priced products underpinned by excellent customer service is working well and we are seeing renewal rates of 80% on key products. Although GWP is slightly lower than this time last year, this reflects a fall in motor premium rates rather than in our motor customer base where we have increased our in-force policies by over 200,000. We have continued to grow our SME and home businesses both in relation to GWP and customer numbers.

"Looking towards year-end and 2014 we expect rates in motor insurance to recover as we believe the reduction in premiums as a result of the LASPO legislation may have been over anticipated by certain segments of the market. Subject to claims experience in the final quarter we also expect to report an improved underwriting result this year compared to 2012.

"Within our life business, we expect to report an improved underlying operating profit at year-end compared to last year's results. The retirement division has seen strong growth in pension sales whilst on annuities we took the decision to focus on returns rather than market share and this impacted sales in the first half of the year. In the most recent quarter however annuity sales have increased, whilst returns have held steady. We are now above 2012 volumes for the third quarter, and we expect this trend to continue over the last quarter of 2013.

"In protection, we are pleased with our performance, because the market has been adversely affected by tax changes and gender rules. We continue to be the number one income protection provider of choice for IFAs and in June we launched a new sick pay insurance product and early signs confirm that this product appeals to those who would not have previously considered protecting their income."

"As we continue to build a compelling business with excellent long-term prospects, I am confident that we will continue to deliver good returns for our members over the full year."


Notes:

LV= employs over 5,700 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 trade unions.